was ozl offered finance instead of selling, page-5

Hi Geoff

That is pretty close to the mark, I think the head of CBA, who were leading one of the banking syndicates said something like, "markets have improved, we wouldnt place OZ in administration if shareholders voted against the sale to minmetals" or from memory words to that effect anyway, but they couldnt speak for other lenders.

The Macquarie offer was a fairly one way transaction IMO, at the time good for Macquarie only, with hindsight we would be probably better off now if it had been accepted.

Bubs you asked 'Why didn't they come to shareholders for cash?'

That is the 6.4billion dollar question, I asked OZ many times that same question, I argued with Mathew Foran in the foyer of Freshwater place, I asked him many times for the board to do a rights issue, apparently the board thought a rights issue was to dilutive and uncertain.

How was that ever going to be more dilutive than having the bulk of our assets sold off at the bottom of the market, and not just enough assets sold to satisfy the lenders or our debts, but a billion dollars more assets sold then was required, and then selling Martabe when we already had surplus cash, absolutely farcical actions, and not just in hindsight either.

We were rogered, good and proper, but was that rogering just bad decision making or was there more to it than that,markets were improving in the leadup to the vote, the doors that were closed, were begining to be opened, but it seemed the deal with minmetals was already a done deal, why was that? We can all make up our own minds on that one.


cheers grant


the above is opinion only and written without prejudice