Fonterra Shareholders Fund

[RTM]

Unbelievably disappointing to see these shares of Fonterra placed overseas. Should only have done this if they could not have satisfied the demand within New Zealand. Talk about shooting ourselves in the foot. What were they thinking ?

[BIRMANBOY]

HuHHH? So how is that going to be marketed....Well we cant sell these here in own country...so we thought we 'd try and sell em to you...since you're ..well...foreign so dont know what you're doing.

Unbelievably disappointing to see these shares of Fonterra placed overseas. Should only have done this if they could not have satisfied the demand within New Zealand. Talk about shooting ourselves in the foot. What were they thinking ?

[Balance]

HuHHH? So how is that going to be marketed....Well we cant sell these here in own country...so we thought we 'd try and sell em to you...since you're ..well...foreign so dont know what you're doing.

haha ...then why the hue and cry from local fund mangers and investors they did not get enough stock?

http://www.nzherald.co.nz/business/n...ectid=10850648

[CJ]

HuHHH? So how is that going to be marketed....Well we cant sell these here in own country...so we thought we 'd try and sell em to you...since you're ..well...foreign so dont know what you're doing.

Rumour is it was oversubscribed several times by the NZ market alone. Their broker should have know this and said 'We dont need foreigners'. Of course their fees were higher because of this so the Directors should have asked that question and should now be angry at their broker for getting it drastically wrong!

I personally seem even more going overseas, not less, as foreigners are currently willing to accept much lower yeilds on their investments. Amazon, just did a $3B bond issue, with most of it in the 1 - 2% range!!!

[BIRMANBOY]

Why indeed...Obviously Fonterra trying to establish some global interest and increase exposure to the units....all good. Locals are peeved .. (missing their commissions)so what..get over it and buy back in if you want some. My point originally was that RTM was being naive in expecting Fonterra to hold them for Kiwi investors because they owe us....? And then being naive again in somehow believing the gratefull globals would be buying a product we could'nt even sell to ourselves (if that had happened).. Clear?

haha ...then why the hue and cry from local fund mangers and investors they did not get enough stock?

http://www.nzherald.co.nz/business/n...ectid=10850648

[BIRMANBOY]

Yes agree ...when (if they ever do) the global equity markets start to recognise the value available in NZ bonds and shares...I forsee some strong growth.

Rumour is it was oversubscribed several times by the NZ market alone. Their broker should have know this and said 'We dont need foreigners'. Of course their fees were higher because of this so the Directors should have asked that question and should now be angry at their broker for getting it drastically wrong!

I personally seem even more going overseas, not less, as foreigners are currently willing to accept much lower yeilds on their investments. Amazon, just did a $3B bond issue, with most of it in the 1 - 2% range!!!

[RTM]

"And then being naive again in somehow believing the gratefull globals would be buying a product we could'nt even sell to ourselves (if that had happened).. Clear?"

Nah....don't care at all where Fonterra sells their product. But I do care about New Zealand and I do care about ownership of Fonterra and I do care where the profits / dividends from Fonterra go. And I would rather they went to New Zealand shareholders.

Just can't see how overseas ownership helps. Immediately, day one, profits from our best industry are leaving our country. We could have sold all to Kiwi's, superfunds etc...and the let the overseas folk buy on the market if the they chose to. Tried to create a little more wealth for Kiwi's.

Maybe I am seeing this to simplistically.

[POSSUM THE CAT]

RTM In an Auction you sell first to the highest Bidder & a Book Build is an Auction. So tell the NZ institutions to bid Higher. They got the right to pick up the remainder at the book build price. They could have bid the maximum book bid price. Just like others did.

[BIRMANBOY]

Good on you for being idealistic. Problem is of course,assuming you are a non-owner, what you want is unfortunately probably just immaterial to Fonterra. They want what they perceive as being in the best interests of the shareholders. Theoretically that would be getting as wide a spread and as international as possible to the shareholder base. Selling solely into the NZ market would in effect "bury" it into a small ,incestuous pool. Overseas capital investment should raise the value and visibility of the product for everybody. Creating wealth sometimes means you have to give up a bit. Hopefully the results mean a greater gain for everbody...even if a few are overseas.

"And then being naive again in somehow believing the gratefull globals would be buying a product we could'nt even sell to ourselves (if that had happened).. Clear?"

Nah....don't care at all where Fonterra sells their product. But I do care about New Zealand and I do care about ownership of Fonterra and I do care where the profits / dividends from Fonterra go. And I would rather they went to New Zealand shareholders.

Just can't see how overseas ownership helps. Immediately, day one, profits from our best industry are leaving our country. We could have sold all to Kiwi's, superfunds etc...and the let the overseas folk buy on the market if the they chose to. Tried to create a little more wealth for Kiwi's.

Maybe I am seeing this to simplistically.

[J R Ewing]

Good on you for being idealistic. Problem is of course,assuming you are a non-owner, what you want is unfortunately probably just immaterial to Fonterra. They want what they perceive as being in the best interests of the shareholders. Theoretically that would be getting as wide a spread and as international as possible to the shareholder base. Selling solely into the NZ market would in effect "bury" it into a small ,incestuous pool. Overseas capital investment should raise the value and visibility of the product for everybody. Creating wealth sometimes means you have to give up a bit. Hopefully the results mean a greater gain for everbody...even if a few are overseas.

42% is "a few"?
Kiwis are "a small incestuous pool"?

And if it is correct that these overseas instos are likely to dump at a profit on day one, just how will that either "raise the value and visibility of the product" or create wealth for anyone other than the overseas inst and the broker?