Comments on: 7 reasons why Allied’s deal will succeed

By: adam smith

adam smith — Tue, 01 Dec 2009 23:48:57 +0000

I say Vote NO to Allied’s offer.
I think Hanover and United investors will have rocks in their heads if they accept the Allied offer. A 12million market cap company taking over a $400 million asset – you’ve got to be joking.
In the argument over receivership, I think everyone including Grant Samuel have forgotten that if a receiver is appointed it will be working for the secured depositors. This isn’t a case where there is a prior charge holder who has appointed a receiver and everyone else goes “he”. The receiver will not be able to fire-sale everything as his duty will be to the secured depositors.
The unsecured depositors should get nothing unless all the secured debenture holders have been repaid. And NZ has a better chance of winning the Soccer World Cup than the secured investors being fully repaid.
I reckon that if the deal goes ahead and Allied issues shares at say X cents per share, it would not surprise me if sharemarket trading doesn’t occur at 0.25 X or lower as holders of 1.2 billion new Allied shares rush to the exit in a totally misguided view that they will be able to sell at a fair price.
If history repeats itself, perhaps the former owners will try to buy the farm back at cents in the dollar!

By: Majella

Majella — Tue, 01 Dec 2009 01:21:52 +0000

Ricardo says:”The only winners will be Hotchin and Watson”

Well, I don’t think so. They’re still liable for the overhanging liabilities of Hanover, once the assets have been taken over, and of course, they’ve also collectively burnt $70-odd million dollars since TSHTF.

Wendy – so absolutely correct. In fact, if anything, receievers actually devalue assets, with the stench of death that accompanies them.

By: Wendy Milne

Wendy Milne — Mon, 30 Nov 2009 22:19:00 +0000

If Hanover investors can extend some foresight beyond the hype they are currently being bombarded with they will go with Allied as they are the only people with a plan that incorporates the word future,receivers dont come for free and dont share any pain of loss.

By: Ricardo

Ricardo — Mon, 30 Nov 2009 19:14:10 +0000

Either way the investors will see little return. The only winners will be Hotchin and Watson. Watch this space as these two come up with something new, under a different name, with a publicly trusted front person in the future and fleece the next generation of suckers.