Friday, April 6, 2012

Siteserv 60 million offer made formal shareholder proxy votes 98.4 % for O Brien deal'? and Liam Lawlor is dead

Fine Gael seem determined to allow Denis O'Brien, who owes Anglo hundreds of millions to run away with a gem company Siteserv that has had a 110 million write down from the  IBRC  aka Anglo Irish Bank despite a better offer.
 According to  Ray Neilson of Altrad who are offering the 60 million, the votes at today's shareholders EGM were proxy votes mostly cast before his firms offer. It must be remembered that Alstad were repeatedly told the company was not for sale from last September top March this year.
 The sale to Denis O'Briens Isle of Man company was announced on March 16. If the Irish government allow this sale to proceed then they are threading on the patience of the Irish people. 

It must be noted that despite a write down of 110 million Siteserv shareholders are to be allowed keep 5 million from the sale . However if the taxpayer were to get the  60 million offer the loss via Anglo is reduced to 90 million. Go figure whats going on here . Enda Kenny buddy sweetheart deal? Corruption? Note Denis O'Brien and Anglo debt of his own below

NB The story of O’Brien owing money to Anglo appeared in the UK edition of theSunday Times this week. It mentions how he borrowed 510 million to invest in Independent News & Media and then lost 500 million when IN&M got into financial difficulty in 2008 and was forced to do a debt for equity swap when it couldn’t pay up for bonds when they became due. Of course he still owes the millions he borrowed. Here’s the quote from the article which was provided by
“His most painful investment has been Independent News & Media, whose stable includes the Irish Independent. Between 2006 and 2009 he built a 26% stake at a cost of more than €510m. During that period the group’s newspapers ran articles critical of him.
He engaged in a bitter wrangle over the company’s direction with Sir Tony O’Reilly, the long-time chief executive. O’Brien eventually won his campaign to force out O’Reilly, who retired in 2009.
Financially, however, the business was a disaster for him. The publisher was hit hard by the economic slowdown and in 2009 it was forced into a debt-for-equity swap that virtually wiped out investors.
O’Brien, still the biggest single investor, was left nursing a €500m paper loss. Worse, he would have to look elsewhere to repay Barclays Bank and Anglo Irish Bank, which funded the share spree.”
Looks like the Irish people are getting shafted without a reach around.

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