| Topic: |
Science > Prophecies-Of-Nostradamus |
| User: |
"=?utf-8?B?LsK3OirCqMKoKjrCty7CtzoqwqjCqCo6wrcuICDimaUgTXIgSGFua3kgdGhlIEhPT1JPTyBDaHJpc3RtYXMgSm9iYnkgIC7CtzoqwqjCqCo6wrcuIOKZpcKpwq7ihKI=?=" |
| Date: |
18 Dec 2006 12:17:02 AM |
| Object: |
ot....Hooroo to jobs as equiteers get the jump |
More victims of the evils of Globalization:
HOOROO
UNCLE WALLY
====0====
http://www.theaustralian.news.com.au/story/0,20867,20816591-16942,00.html
Hooroo to jobs as equiteers get the jump
MARGIN CALL
Michael West
November 25, 2006
HOSTIE: "Welcome to MacQantas flight 321. May I take your shirt, sir?"
Passenger: "Well, er, yes. Er, will you be needing anything else?"
Hostie: "Just the pants, sir. May I show you to your seat?"
Takes passenger, nude, to seat.
Customer: "But this is the toilet!"
Hostie: "Was the toilet, sir. This is one of our new T-seats. You won't
be requiring the in-flight potty like the other passengers. Here's our
Duty Free brochure and financing options. Fasten your seat belt
please."
Plane brilliant
NICE work, Dicko. Back up the truck, folks. This is a little beauty of
a deal for Mangy Roo shareholders. If they can pull it off. Staff, line
up your next job right away. Customers ... stick 'em up! But
shareholders, well, you'll only get one Bonderman in a lifetime.
Maccas, Bonderman's TPG and private equity in for $5.50 a share - $10
billion for $500 million in net profit from no fewer than 12 aircraft
types, and up to 20 configurations in a fleet which is, on average, a
tad over 11 years old. The Singapore Airlines fleet is roughly six
years old, Virgin younger still.
So there's a humungous capex spend to be had. Though the financiers
will skin the roo here too. Let's say there's $10 billion to fork out
in 787s and A380s; 10 per cent financing costs on $10 billion is $1
billion. No wonder those cunning boys from Allco are lining up with
Dear Old Maccas for a bit of that action.
If not, it'll be Dad's Air Force by the time the lads have done their
private equity shuffle. They'll take the long handle to the workforce,
flog whatever can be flogged, outsource the rest, gear up like there's
no tomorrow and flick the thing back into the market in two years -
with the aircraft financing deals spitting cash their way for years.
If they can. Airlines are the most capital-intensive, labour-intensive,
fuel-intensive businesses in the world. Qantas thrives on government
protection from the likes of SingAir and Emirates on the Pacific route
to the US, and on its domestic duopoly with Virgin Blue.
We just checked the price of a one-way ticket from Adelaide to Broome
on Monday ... $1947. Thanks for coming!
For Dicko, his finance guy Peter Gregg and the Roo's top management
there's a colossal incentive to deal - $100 million plus in equity, no
risk.
But for the financiers, Qantas is a highly testicular punt. Maccas
knows this and will look to get its equity down to 5 per cent and rip
out a couple of hundred million dollars in advisory and debt
syndication fees.
Heck, they might even try slapping together a stapled security before
they refloat to allow the Old Roo to book profits from revaluations via
a trust - instead of cash flow. If the instos have still got an
appetite for that sort of thing.
As for synergies, a consolidation of tax havens could be on the cards.
The Mangy Roo prefers the Caymans, while Maccas is rather fond of
Bermuda.
The airline's 47 per cent gearing, already high, would be complemented
by a bit of the old off-balance-sheet debt in finance leases. By the
time it floats again, this time with no Government to forgive its debt,
the off-balance-sheet leverage could be daunting, if the market could
see it.
Meanwhile, talk of asset sales should be put firmly in perspective.
Dicko has already tried all that. The catering has been up for sale for
a while, no takers there. Terminals? If they flog the terminals for a
decent price, whoever buys them - Macquarie Airports, probably - will
have to gouge Qantas to make a return on the deal. That can happen
after the float.
Vulture culture
IF you were wondering what's going on with the deluge of private
equity, here's the inside yarn. The private equity boys and girls are
pretty seasoned vultures. They know these rampaging market conditions
can't last and they are trying to spend every last cent to raise some
more money from the dummy super funds before the party winds up.
Even taking the view that they are paying too much for this year's
acquisitions, which most of them would, when you're running a
closed-end fund, the money's locked up and you're charging five times
the management expense ratio of the Perpetuals and Colonials of the
world, what do you do? Go for broke!
The management expense ratio on a normal fund is roughly 50 basis
points, whereas the private equiteers charge roughly 250. For every $1
billion raised, the private equity players will be snipping $25 million
in management fees for the next seven to 10 years, regardless of
performance. Performance fees approximate 20 per cent of the profit on
these deals in excess of the hurdle rate (often the cash rate).
Most of it is super money, your money, splashed about by fund managers
who get paid regardless of performance too. In the wash-up, as the
private equity sharks gear up like blazes with easy bank debt - up to
10 times leverage on a deal - Not exactly the most accountable money
about, either. While the ASX has happily been granting waivers from
shareholder votes for the likes of Seven Network and PBL's private
equity monster deals, plenty of other stocks have been shoved about on
private equity speculation.
If an unsubstantiated third party rumour that a private equity mob is
about to pounce on this or that is not enough, a letter surely is. A
typical private equity letter says nothing firm and certainly nothing
binding other than "Howdy, we're interested in buying your company and
we'll all get rich." Then the approach gets leaked. The ASX requires
the company to disclose the approach, the stock rallies another 20 per
cent. If it's not fair dinkum, the smart money is already short.
Foolproof insider trading. Have a nice weekend.
=============================================
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| User: "Werewolfy" |
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| Title: Re: ot....Hooroo to jobs as equiteers get the jump |
18 Dec 2006 01:54:45 PM |
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| User: "=?utf-8?B?LsK3OirCqMKoKjrCty7CtzoqwqjCqCo6wrcuICDimaUgTXIgSGFua3kgdGhlIEhPT1JPTyBDaHJpc3RtYXMgSm9iYnkgIC7CtzoqwqjCqCo6wrcuIOKZpcKpwq7ihKI=?=" |
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| Title: Re: ot....Hooroo to jobs as equiteers get the jump |
18 Dec 2006 09:13:27 PM |
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Werewolfy wrote:
.=C2=B7:*=C2=A8=C2=A8*:=C2=B7.=C2=B7:*=C2=A8=C2=A8*:=C2=B7. =E2=99=A5 Mr=
Hanky the HOOROO Christmas Jobby
.=C2=B7:*=C2=A8=C2=A8*:=C2=B7. =E2=99=A5=C2=A9=C2=AE=E2=84=A2 wrote:
More victims of the evils of Globalization:
Sorry Wally.
I really couldn't understand a word of that. It's English, but although
I read it quite carefully, it carried no meaning at all.
Werewolfy
That's perfectly understandable, Ricky.
There's a lot of Aussie lingo in there, amazing what just 218 years of
separation
will do to a language, isn't it ?!?!
Par example, just look at the differences between English English &
American English:
car park =3D parking lot
shopping trolley =3D shopping cart
lift =3D elevator
torch =3D flashlight
petrol =3D gasoline, etc, etc, ad infinitum ad nauseam.
Well there are also quite a few differences between English English &
Australian English
also, ie The High Street =3D The Main Street, Lorry =3D Truck, etc.
Hello =3D Gooday, Goodbye =3D Hooroo
There is a hellovalot of Aussie colloquialisms in the article by
Michael West that would
present many difficulties in understand what the heck he is talking
about.
Basically the crux of the story is that once Qantas is sold off to
overseas interests, many local jobs will simply go overseas
(outsourcing) Not only will many Aussie jobs go , but service levels
will drop dramatically.
I don't fly Qantas anyway, Virgin is the best carrier in Australia.
I will now endeavor to translate some of the Aussie lingo into English
English:
Hostie =3D Airline Host/ess
MacQantas =3D Qantas
potty =3D lavatory
humungous =3D huge
roo =3D kangaroo
Maccas =3D McDonalds (Family Restaurants)
flog =3D sell
flogged =3D sold
Singair =3D Singapore Airlines
testicular =3D risky
instos =3D institutional shareholders, market & capital investors
terminals =3D Airline terminals/airport terminals
There's quite a bit of additional financial terminology in this
article.
Googling can be a lot of fun !!!!
HOOROO
UNCLE WALLY=20
=3D=3D=3D=3D0=3D=3D=3D=3D
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| User: "JTEM" |
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| Title: Re: ot....Hooroo to jobs as equiteers get the jump |
18 Dec 2006 10:01:22 PM |
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Werewolfy wrote:
I really couldn't understand a word of that.
As if that was unusual. Please.
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