Sean K
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Wonder how he's going to get away with this?
Is it jail material? Or a slap on the wrist, and a fine? Banned as a company dirctor? Looks pretty ordinary.
Fortescue knew Chinese deal was dead, documents show
April 29, 2009
Article from: Australian Associated Press
FORTESCUE Metals Group knew a deal with a Chinese company had collapsed a month before a newspaper article forced the miner's admission, court documents show.
Documents released by the Federal Court in Perth show Fortescue received a fax from China Metallurgical Construction (Group) Corporation on February 3, 2005, advising that a deal with the iron ore miner was off.
But Fortescue did not announce to the stock exchange that its so-called "binding" deal with MCC had collapsed until a newspaper article on March 24, 2005, forced its hand.
In the documents released yesterday, former Fortescue executive assistant Wei Fisher said in a witness statement company chief executive Andrew "Twiggy" Forrest was "very upset" when he received a fax from MCC saying the deal was off. Her statement alleges she heard Mr Forrest say words to the effect: "This is ridiculous. If anyone tells the press, we've had it."
Her statement also said she was fired shortly after the fax arrived for not doing well in negotiations with the Chinese. The deal in question was announced by Fortescue on November 5, 2004, as a binding contract under which MCC would provide financing, design and construction for Fortescue's Pilbara mine and beneficiation plant.
The miner later admitted, on March 31, 2005, the deals were in fact only "framework agreements". The talks between MCC and Fortescue hit a brick wall when the Chinese company demanded an 80 per cent stake in the miner but Mr Forrest was only prepared to offer 30 per cent.
Is it jail material? Or a slap on the wrist, and a fine? Banned as a company dirctor? Looks pretty ordinary.
Fortescue knew Chinese deal was dead, documents show
April 29, 2009
Article from: Australian Associated Press
FORTESCUE Metals Group knew a deal with a Chinese company had collapsed a month before a newspaper article forced the miner's admission, court documents show.
Documents released by the Federal Court in Perth show Fortescue received a fax from China Metallurgical Construction (Group) Corporation on February 3, 2005, advising that a deal with the iron ore miner was off.
But Fortescue did not announce to the stock exchange that its so-called "binding" deal with MCC had collapsed until a newspaper article on March 24, 2005, forced its hand.
In the documents released yesterday, former Fortescue executive assistant Wei Fisher said in a witness statement company chief executive Andrew "Twiggy" Forrest was "very upset" when he received a fax from MCC saying the deal was off. Her statement alleges she heard Mr Forrest say words to the effect: "This is ridiculous. If anyone tells the press, we've had it."
Her statement also said she was fired shortly after the fax arrived for not doing well in negotiations with the Chinese. The deal in question was announced by Fortescue on November 5, 2004, as a binding contract under which MCC would provide financing, design and construction for Fortescue's Pilbara mine and beneficiation plant.
The miner later admitted, on March 31, 2005, the deals were in fact only "framework agreements". The talks between MCC and Fortescue hit a brick wall when the Chinese company demanded an 80 per cent stake in the miner but Mr Forrest was only prepared to offer 30 per cent.