BCS - BrisConnections Unit Trusts

[adman0001]

Re: Brisconnections shareholders - financial ruin

major shareholder as far as i know is 51% or to be more precise is 50.1% but they then have a controlling say. And thx Julie for your pm, it's all good. Been slack replying to you.

 

[cuttlefish]

Re: Brisconnections shareholders - financial ruin

As I understand it, disclosure rules require shareholders to give notice when their shareholding exceeds 5%. Foreign shareholders need to seek FIRB approval before going above 15% and takeover rules apply for 20% or above (unless the 3% creep rule is applied which allows a shareholding to be increased by 3% per annum without mandatory takeover applying). My info could be wrong or out of date.

 

[Absolutely]

Re: Brisconnections shareholders - financial ruin

Well, maybe it's a case of get as many of the shares as possible, for a fee per share from those desperate to be rid of them. Accummulate a big pile of cash and move to South America - "disappear" so to speak ????

 

[prawn_86]

Re: Brisconnections shareholders - financial ruin

My bet is its someone associated with Mac Bank. Works like this:

Mac BAnk gets paid to take the BCSCA that they have already sold down. This way they have less of a liability if they are forced to cover a lot as the underwriters. Or if all goes to (their) plan they will obtain a vast amount and be able to pull the plug on the project on some legal loophole, meaning they have then made a profit from "buying" these shares...

 

[drsmith]

Re: Brisconnections shareholders - financial ruin

Is it worth the effort though for Mac Bank to aquire the shares in this way ?

If, say for example they got $5000 from someone holding 500,000 shares that's $0.01 per share. Some hold much bigger parcels so a few thousand dollars is going to equate to even less per share.

Wouldn't it be easier for Mac to buy them on the market for $0.001 than waste time with this sort of amateur nonsense.

 

[Macquack]

Re: Brisconnections shareholders - financial ruin

My bet is its someone associated with Mac Bank. Works like this:

Mac BAnk gets paid to take the BCSCA that they have already sold down. This way they have less of a liability if they are forced to cover a lot as the underwriters. Or if all goes to (their) plan they will obtain a vast amount and be able to pull the plug on the project on some legal loophole, meaning they have then made a profit from "buying" these shares...

One thing is for certain, Macquarie Group has made a profit on the floating of this shipwreck. About a $100 million profit!

It was obviously easier for the grubs at MacGrab to float Brisconnections than it is to ACTUALLY BUILD THE BLOODY ROAD.

 

[moXJO]

Re: Brisconnections shareholders - financial ruin

If you set up a company and off loaded the shares to it. Then when the installment is due bankrupt the company would you still be personally liable?
Even better if the company went bankrupt with debt owing to the tax department or bank would they seize your shares as assets

 

[maffu]

Re: Brisconnections shareholders - financial ruin

I feel so sorry for the shareholders stung by this anomaly

How many shares are outstanding? With Mac Bank as underwriters, are they in a position to come up with the 800-900million cash? Surely with the financial crisis and all the jobs they are cutting a nearly 1 billion dollar cash outflow could cause plenty of damage to them? Will that turn out to be the biggest news of the scenario?

 

[Julia]

Re: Brisconnections shareholders - financial ruin

One thing is for certain, Macquarie Group has made a profit on the floating of this shipwreck. About a $100 million profit!

Could you explain how you came to this conclusion?

 

[Macquack]

Re: Brisconnections shareholders - financial ruin

Could you explain how you came to this conclusion?

smh.com.au
Business Day
Disconnections in Brisbane
Michael West July 5, 2008
http://www.theaustralian.news.com.au/story/0,25197,24086196-5012439,00.html

You've got to hand it to Macquarie. MIG, MAP and MCG are dancing on their lows, RiverCity Motorway - the other Brisbane toll road - is wallowing at one-third of its issue price and the macramé magicians bob along and blithely rip out $110 million in fees upfront - six years before there is sufficient toll revenue to fund a distribution for investors from cashflow. Le plus ca change.

I generously allowed $10 million for "Printing and Stationery", leaving the McHouse of Cards with a $100 million dollar upfront profit.

 

[maffu]

Re: Brisconnections shareholders - financial ruin

I generously allowed $10 million for "Printing and Stationery", leaving the McHouse of Cards with a $100 million dollar upfront profit.

Wont they stand to lose about $700 million as the underwriters assuming the majority of the retail shareholders can not pay the installment?

 

[Julia]

Re: Brisconnections shareholders - financial ruin

Wont they stand to lose about $700 million as the underwriters assuming the majority of the retail shareholders can not pay the installment?

I'd have thought so too.

 

[Enzyme]

Re: Brisconnections shareholders - financial ruin

I think there is roughly $800 million due in the two installments.

Assuming that the underwriters had to cover all of that, then the liability on the underwriters will be:

Maquarie: $336 million
Deutsche Bank: $336 million
Credir Suisse: $66 million
JP Morgan: $66 million.

(Maquarie and Deutsche underwrite 41.7% each, while Credit Suisse and JP Morgan cover 8.3% each)

 

[Enzyme]

Re: Brisconnections shareholders - financial ruin

Quote from the Courier Mail:

Labor M P's share fee on airport link contract


TWO influential Labor figures shared a "success fee" after their consulting effort helped a consortium win the Government Airport link contract.

Former politicians Terry Mackenroth and Con Sciacca pocketed a huge windfall, believed to be about $500,000, after the BrisConnections consortium won the tunnel tender.

The revelation that the two Labor identities profited from the State Government's decision will raise further concerns about the integrity of the process behind the contract for Australia's biggest road tunnel project.

The deal has already been dogged by Anna Bligh's free holiday at the Sydney mansion of Thiess director Ros Kelly just before the contract was awarded as well as the Queensland Investment Corporation's purchase of BrisConnections shares, both of which are chaired by Trevor Rowe.

Industry insiders are astounded at the size of the success fee, saying while such arrangements occur, a $500,000 pay day was extraordinary.

 

[Macquack]

Re: Brisconnections shareholders - financial ruin

Wont they stand to lose about $700 million as the underwriters assuming the majority of the retail shareholders can not pay the installment?

I think there is roughly $800 million due in the two installments.

Assuming that the underwriters had to cover all of that, then the liability on the underwriters will be:

Maquarie: $336 million
Deutsche Bank: $336 million
Credir Suisse: $66 million
JP Morgan: $66 million.

(Maquarie and Deutsche underwrite 41.7% each, while Credit Suisse and JP Morgan cover 8.3% each)

It is not a complete loss for Macquarie. Covering any defaulting shares results in Macquarie taking ownership of those shares (for what thats worth!).

Macquarie did float this company and push the great value of this project.

 

[Macquack]

Re: Brisconnections shareholders - financial ruin

Former politicians Terry Mackenroth and Con Sciacca pocketed a huge windfall, believed to be about $500,000, after the BrisConnections consortium won the tunnel tender.

They should have reimbursed these crooks with shares in Brisconnections (first installment only).

That would leave them with $500 and a $1 million liability, a reasonable "success fee" for their stellar efforts.

 

[Enzyme]

Re: Brisconnections shareholders - financial ruin

They should have reimbursed these crooks with shares in Brisconnections (first installment only).

That would leave them with $500 and a $1 million liability, a reasonable "success fee" for their stellar efforts.

The be fair to these guys, as far as I can tell neither had held any public office for several years. As private citizens they are as entitled to be employed by and work towards the success of the Brisconnections bid as anyone else.

If their involvement casts a shadow over anyone, it is the over the current serving ministers and/or members of parliament involved in the tender process. Presumably the reason ex-Queensland politicians were hired and paid big success bonuses for winning a tender with the Queensland government was their links with that government and supposed ability to influence the decision, or at least influence the process.

Whoever paid these guys a combind $1 million success bonus thought they could influence the process. Did they?

 

[NiMaC]

Re: Brisconnections shareholders - financial ruin

The be fair to these guys, as far as I can tell neither had held any public office for several years. As private citizens they are as entitled to be employed by and work towards the success of the Brisconnections bid as anyone else.

If their involvement casts a shadow over anyone, it is the over the current serving ministers and/or members of parliament involved in the tender process. Presumably the reason ex-Queensland politicians were hired and paid big success bonuses for winning a tender with the Queensland government was their links with that government and supposed ability to influence the decision, or at least influence the process.

Whoever paid these guys a combind $1 million success bonus thought they could influence the process. Did they?

Mabey they took lessons off Brian Burke!

 

[Sunder]

Re: Brisconnections shareholders - financial ruin

Admin note: Quoted post removed at author's request

Sounds shifty if you won't post details on a public forum...

Most avenues have been explored here, and most are either impractical or illegal. I'm now curious as to why you are hesitant to post, and use an anonymous email address.

 

[sails]

Re: Brisconnections shareholders - financial ruin

Sounds shifty if you won't post details on a public forum...

LOL ... Just because they may be working quietly on a solution doesn't necessarily imply it's shifty...

Why worry Sunder? - if it's shifty, it probably won't work anyway ...