http://nzx-prod-s7fsd7f98s.s3-websit...271/323992.pdf
Makes for very sobering reading.
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http://nzx-prod-s7fsd7f98s.s3-websit...271/323992.pdf
Makes for very sobering reading.
Could spend 2 years in the N.Z. legal system running through the full gambit of the appeals process and another couple of years in European courts with enforcement action, (assuming they get a judgment in their favour which isn't subsequently successfully appealed here). How many tens of million each and every year will be spent on legal costs ?
Why not just spend that money buying back the shares at dirt cheap prices instead ?
I think I will also vote against this.
Is it either someone(s) knows something and hence the price rise or the latest valuation pushing it along -
Not complaining though, up about 35% so far on my very modest holding, just a little behind the other one going great guns at present in this sector
Yes. As I understand it both parties walk away and accept their own costs in this fiasco. As I see it MET could easily sink tens of millions a year down the rat hole of QC's legal costs and EQT could hide behind the European courts judicial system. They might as well spend $50m a year on a buy-back of the companies own shares than line the lawyers pockets for many years to come don't you think ? Who knows what the legal costs will amount too ? They're not giving any information on that so one has to assume the very worst.
Read this article NZH paywall
Paul McBeth: Metlifecare's Nordic deal - when schemes of arrangement go bad https://nzherald.co.nz/business/news...ectid=12338007
Schemes of Arrangement will lose value if we don’t force EQT to honour the deal
i guess as shareholders we don’t care that much about the Schemes in general but if you dont stand up for your rights no one else will
i think the costs mentioned by you Beagle are overstated
How much can QC’s cost even if we hire two (like EQT) surely not 25 million per year each
I'm going to take a wild guess here because the rumour mill suggests about $2,000 - $2,500 per hour for QC's and suggest there's perhaps 2000 billable hours to get this through the initial high court hearing for the QC involved. That's $4-5m. Then there's the team at the law firm supporting him doing the research. They might have a team of 6-10 researching all precedents from other countries around the world and their hourly rate might average $700 and they might put in 1000 hours each.
The above is an extremely speculative and wild guess but it comes to around $10-12m so yes, $50m was an emotionally charged guess (without any thought), my bad....but who knows and no-one is giving a quote and nobody knows how long this could go on for and what the costs and processes are for enforcement through the Luxemburg courts assuming after all appeals MET had a decision in its favour.
Yes if MET roll over it will diminish the attractiveness of future scheme implementation agreements but that's no bad thing. I always preferred a proper takeover with 90% approval required anyway.
What is a crying shame is that the 10 July meeting is a virtual one. There is no need for that given we are in level 1. In my experience with virtual meetings they deliberately choose not to answer some really hard written questions. I was really looking forward to going along and asking some really searching questions and getting a feel for the directors competency in handling them.
My gut tells me MET are going on a VERY long and VERY expensive goose chase here...but I guess if MET doesn't try to at least initiate proceedings in the first instance there is NO chance of a settlement so I suppose its worth a go.
thx for refining your estimate Beagle
yeh I think we need to go through the motions to force a response and increase the chances of a re-deal
its totally ridiculous these costs, why would we pay a team of researchers when you’re already paying 2500 an hour
ive read Bleak House by Dickens and the law is an ass and I always try to avoid lawyers but here it is at least about a show of strength (echo and the Bunnymen song too in case you care)