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 Originally Posted by Roger
Great post which I missed when I posted earlier. This looks like a real scurrilous and despicable fiasco.
Until I went through the takeover offer documents did I got seriously annoyed with the so-called Independent directors, KordaMentha and of course, Falkenstein.
The documents hardly stand up to scrutiny and imo, are sent to deprive minority shareholders of future upside potential from the turnaround of JWI.
What is particularly galling is the fact that Falkenstein had a poor reputation from the 1980s before JWI was listed - JWI was a second chance for him in the public arena.
It is his gross mismanagement of the company which led to the destruction of shareholders' wealth and further capital raising in 2008 at 42 cents.
Seems like leopards really do not change their spots?
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The same KordaMentha that valued Geneva finance shares at 35 cents because they were engaged by the company to tell potential shareholders whatever version of the truth the directors wanted to disseminate.
All done with the usual all encompassing disclaimers of course. Pity they didn't print it on toilet paper, (seeing as most of us don't have fires anymore), then it would be useful for something.
This situation and the one I've alluded too highlight the dangers for shareholders in small companies trying to get a feed off penny dreadful's. If you bottom feed the market you're more than likely to end up with a s#@t sandwich and the chances of any regulatory intervention to protect your interests is exceptionally remote to say the very least.
Last edited by Beagle; 24-11-2014 at 09:31 PM.
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http://www.stuff.co.nz/business/6348...r-meanspirited
Just Water offer 'mean-spirited'
TIM HUNTER
Last updated 16:39, November 24 2014
Share
'MEAN': A takeover offer for the water cooler company could shortchange minority shareholders, a broker says.
'MEAN': A takeover offer for the water cooler company could shortchange minority shareholders, a broker says.
Sharebroker Colin Giffney has described a takeover offer for NZX-listed Just Water International as "mean and mean-spirited", saying it undervalues the company.
Just Water, which provides water coolers for offices, is subject to a 15c a share takeover bid from interests associated with its founder Tony Falkenstein.
The unconditional offer values Just Water at $14m and falls at the low end of a valuation from KordaMentha of 14.7c to 16.8c a share.
Since making the offer on November 14, Falkenstein's bid vehicle Harvard has moved from 71 to 73 per cent ownership, but has run into opposition from some minority shareholders.
This afternoon Just Water shares changed hands at 16c, indicating some investors think the price could go higher.
Giffney, whose firm Giffney and Jones was lead manager of Just Water's float in May 2004, said he had wanted to mail his thoughts on the offer to other shareholders, but had been denied access to an electronic version of the share register.
"I didn't want to go to the media, I wanted to go to shareholders, but they're forcing me basically."
Valuation could only ever be a matter of opinion, he said.
"All I'm doing is trying to communicate an alternative view. I'm not saying mine's right."
Giffney said in his view Just Water had good cashflow and in the last four years had repaid $13 million of debt, with borrowings falling from $26m in June 2010 to $13.1m in June 2014.
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"At moment you've got companies floating that haven't made a dollar and haven't done anything, selling on multiples to earnings.
"This one shareholders are being asked to give up at 4.4 times [earnings before interest, tax, depreciation and amortisation]. I'm sorry there's a disconnect somewhere."
He said the offer was "mean and mean-spirited to loyal shareholders who have supported the company through the tough times."
Giffney said because the offer was unconditional, which meant all purchases through the takeover were final, shareholders should not accept until it was clear what the large shareholders are doing.
"I'm pretty disgusted with the way they're behaving."
Falkenstein could not be reached for comment this afternoon.
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Originally Posted by Anna Naum
http://www.stuff.co.nz/business/6348...r-meanspirited
Giffney, whose firm Giffney and Jones was lead manager of Just Water's float in May 2004, said he had wanted to mail his thoughts on the offer to other shareholders, but had been denied access to an electronic version of the share register.
Giffney said because the offer was unconditional, which meant all purchases through the takeover were final, shareholders should not accept until it was clear what the large shareholders are doing.
"I'm pretty disgusted with the way they're behaving."
Falkenstein could not be reached for comment this afternoon.
What an *rsehole that Falkenstein is - fancy denying minority shareholders access to another opinion by delaying tactics like not providing electronic copy of share register.
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Blatant greed at work here. Falkenstein probably knows bloody well with good profits now and very low interest rates he can renegotiate debt funding lines now at a substantially lower rate and with complete control look for significant other efficiencies so isn't really even paying 4.4 times EDITDA. This is highway robbery.
P.S. Good to see a strong bid for 200,000 shares at 16 cents on the market. Market is saying to Falkenstein, ante-up or get stuffed.
Last edited by Beagle; 25-11-2014 at 02:13 PM.
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Member
Originally Posted by Balance
This Tony hatred is really poor. It funny how all this crap comes out the moment he makes his 15C offer.
Why is there no comment made when the share price was at 10C?
Looking back, Falkenstein did not sell any of his holdings as the company spiraled down. It was other holders. If other holders feel the company is no longer worth that then they're welcome to sell. If Mr Market isn't fond of this stock then so be it.
If you think his offer is crap then what about the millions of other business people/investors who purchased companies at low valuations which made them millionaires, a you going to have a go at them to?
A you going to have a go at buffett for his takeover of Washington post?
How about a go at Graham hart for his leveraged buyouts? No wonder he stays out of media to get away from all of this..
Really disgusting this.
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People are going to have an opinion and it'll often be very divergent to yours mate, no mileage taking umbrage.
I said at the outset I thought a fair price was 20 cents and I'm sticking with that. The kindest way to describe this offer is opportunistic. If people want to use stronger words than that that's their choice and their prerogative. If you're happy with the offer, take it.
I'm with Balance on this one.
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Originally Posted by Chaowee88
This Tony hatred is really poor. It funny how all this crap comes out the moment he makes his 15C offer.
Why is there no comment made when the share price was at 10C?
Looking back, Falkenstein did not sell any of his holdings as the company spiraled down. It was other holders. If other holders feel the company is no longer worth that then they're welcome to sell. If Mr Market isn't fond of this stock then so be it.
If you think his offer is crap then what about the millions of other business people/investors who purchased companies at low valuations which made them millionaires, a you going to have a go at them to?
A you going to have a go at buffett for his takeover of Washington post?
How about a go at Graham hart for his leveraged buyouts? No wonder he stays out of media to get away from all of this..
Really disgusting this.
Yes, bloody disgusting indeed.
Have you bothered to read the background to this takeover?
Do you appreciate what Falkenstein's position is in this takeover? He is trying to deprive minority shareholders who have supported the company through thick and thin when he mismanaged it, and just when it is turning around, he is making an opportunistic offer.
That is fine but if you bother to read the letter from Mr Giffney, the *raseholes Falkenstein and so-called independent Chairman went out of their way to deprive other shareholders of another opinion :
1. Directors released Target Company statement on Nov 11. Chairman was rang on 14 Nov to provide information but wanted it in writing. This was done but he did not and has not responded. Matter is now with Takeovers Panel.
2. Company was requested (and required) for a mailing list of shareholders on 18 Nov. This was not provided until 21 Nov.
3. Rather than electronic form, it was in hard copy - resulting in further delays. I only received mine today.
4. Falkenstein comes out 'firing' and basically, lied about what has been buying to try and cast doubt on what's happening. Be interesting if he said who is selling. He has access to the share register real time.
Result of the delay is that Falkenstein offer has been accepted by quite a number of shareholders - without access to another opinion. They could have received another 10% today if they waited.
The actions of the Chairman who is supposed to be independent and act in the best interests of all shareholders beg the question of who he is really acting for.
Chaowee88, you may be happy to put up with that kind of unethical, immoral and greed lusty behavior - do not believe for one minute others like me will, ok?
Last edited by Balance; 27-11-2014 at 05:11 PM.
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27-11-2014, 05:12 PM
#100
Member
Originally Posted by Balance
Yes, bloody disgusting indeed.
Have you bothered to read the background to this takeover?
Do you appreciate what Falkenstein's position is in this takeover? He is trying to deprive minority shareholders who have supported the company through thick and thin when he mismanaged it, and just when it is turning around, he is making an opportunistic offer.
That is fine but if you bother to read the letter from Mr Giffney, the *raseholes Falkenstein and so-called independent Chairman went out of their way to deprive other shareholders of another opinion :
1. Directors released Target Company statement on Nov 11. Chairman was rang on 14 Nov to provide information but wanted it in writing. This was done but he did not and has not responded. Matter is now with Takeovers Panel.
2. Company was requested (and required) for a mailing list of shareholders on 18 Nov. This was not provided until 21 Nov.
3. Rather than electronic form, it was in hard copy - resulting in further delays. I only received mine today.
4. Falkenstein comes out 'firing' and basically, lied about what has been buying to try and cast doubt on what's happening. Be interesting if he said who is selling. He has access to the share register real time.
Result of the delay is that Falkenstein offer has been accepted by quite a number of shareholders - without access to another opinion. They could have received another 10% today if they waited.
Freaking *arsehole - that's what he and the so-called independent Chairman are.
I have nothing against your criticism of Tony's offer but calling him names is unnecessary and no I have no association with Falkenstein.
Last edited by Chaowee88; 27-11-2014 at 05:15 PM.
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