Pratt, Babcock, Hegarty, Transurban - it's all happening
February 2, 2010
Dear Mayne Reporters,
First thing's first, check out today's hard-hitting new video calling for OZ Minerals shareholders to vote down Owen Hegarty's outrageous $10.7 million golden goodbye.
It's all happening folks - Babcock vehicles are plunging again, Dick Pratt is facing jail, the market has tumbled another 1.3% and I've been a media tart of the first order.
Today Tonight dropped around at lunch time for a chat about Dick Pratt's potential jailing for lying to the ACCC, so tune in at 6.30pm. And have a listen to this chat about Pratt with 2UE's John Stanley at 4.20pm today.
We made two videos at the time Pratt pleaded guilty of running the cartel with Amcor. Watch the video which was filmed at the All Nations pub in Richmond, where the dirty deed was done, and watch the other commenting on Pratt's insincere apology.
Whilst Pratt deserved to go to jail for being involved in our worst known cartel, it is bit rough given that there weren't criminal sanctions at the time and the Rudd Government is still yet to introduce the relevent legislation.
Yet somehow he still faces some porridge time despite doing a deal which he clearly thought was done and dusted.
So why has ACCC chairman Graeme Samuel re-opened the file, because that is clearly Pratt's view based on today's statement by his lawyer Leon Swier, which included the following:
"Richard Pratt and his wife and their family are shocked by this new ACCC proceeding."
"Visy's and Mr Pratt's dispute with Graeme Samuel's ACCC were resolved last year following mediation before a former high court judge."
"The federal court subsequently ruled and imposed penalties. Mr Pratt expected that in resolving his disputes with Graeme Samuel's ACCC he would be given a fair go."
Leon Swier has Australia's best record in keeping corporate high flyers out of jail as he acted for both Steve Vizard and John Elliott - the two Melbourne business figures who most deserved to do time for their actions.
With the biggest Liberal Party donor in the land now gunning for Samuel's head, it makes Wayne Swan's overdue decision on whether to re-appoint him for another five year term at the ACCC a highly charged political decision.
Jeff Kennett used to privately refer to Samuel as "turn coat number two" after he lost office in 1999. "Turn coat number one" was his great mate Ron Walker who somehow was allowed to keep running the Grand Prix and Commonwealth Games despite being the most prolific bag man in Liberal Party history.
Samuel is a former Liberal Party Treasurer too, who once stood for preselection in Peter Costello's seat of Higgins. However, he is also a passionate believer in competition and free markets, so maybe he's just doing what he really thinks now that his Liberal mates are out of office.
Say what you like about cartels, I just don't believe Sameul would have done this to the biggest Liberal donor in the land, days before his term was due to expire, if John Howard had won last year's election.
However, it is very unlikely he'll do time with a suspended sentence much more likely, given his good record, the earlier ACCC pre-bargain, the discount that applies to guilty pleas and Australia's woeful record at dealing with corporate crooks.
Babcock
After going in a bit too hard on Babcock & Brown with 702 ABC Sydney's Drive presenter Richard Glover in this interview last Friday, it was agreed that an update interview was required to square the ledger after Babcock fired off this strong rebuttal.
However, Transurban's decision to raise $1 billion in equity, slash its dividend and declare its previous debt-laden business model dodgy has had a big impact today, with poor old Babcock & Brown one of the major victims as its two biggest Australian funds suffered another day of double digit percentage falls.
Shares in B&B Power plunged 10c to a record low of 62 and B&B Infrastructure tumbled 11c to 80c, whilst Babcock & Brown itself was 28c weaker at $6.42 in a sharply lower market - still up more than 20% for the week, but 80% below last year's peak and less than the $13.65 price at which institutions injected $220 million just three months ago.
Go here to check out the way all this was couched with Richard Glover at 4.10pm this afternoon, along with our updated special package on Babcock's troubles.
Video traffic
We've got some figures on our most popular videos. There are 13 which have been viewed more than 1000 times as follows:
The Mayne Report Rich List
Australia's most comprehensive record of people who are worth more than $10 million.
May. 28, 2008
Total views to date - 3,881
Game over at Babcock & Brown
Goodbye Rich List, hello $50 billion bank workout.
Jun. 12, 2008
Total views to date - 3,023
Unveiling Costello tilt from Rudd's NYC strip club
Launching independent campaign in the federal election against treasurer Peter Costello for the seat of Higgins.
Nov. 19, 2007
Mayne Report - 94
Youtube - 2,234
Total views to date - 2,328
Sticking it to Jim Cramer
I defend the honour of Macquarie Bank.
Oct. 8, 2007
Mayne Report - 86
Youtube - 2,130
Total views to date - 2,216
Opes chairman's corruption hypocrisy
Peter Gillooly should butt out of the pokies debate and worry about Opes.
Apr. 14, 2008
Mayne Report - 1,831
Youtube - 47
Total views to date - 1,878
Campaign to have Owen Hegarty, the CEO of the new merged company.
Even footy legend Ronald Dale Barassi supports our Owen Hegarty campaign.
Apr. 17, 2008
Mayne Report - 1,296
Youtube - 207
Total views to date - 1,503
At budget lock-up for Crikey
Wayne Swan needs to relax his excessive budget lock-up security.
May. 14, 2008
Total views to date - 1,464
Phil Green's Babcock mea culpa
Compare and contrast Babcock and Macquarie on their broken models
Jun. 3, 2008
Total views to date - 1,338
Diverse offers from Tabcorp and Futuris
Today's mailbag included a pathetic Slater & Gordon offer, Tabcorp shareholder card and a funny Futuris offer.
Apr. 10, 2008
Total views to date - 1,183
Inside the MFS fiasco
The MFS cowboys copped a thoroughly deserved shellacking at today's EGM.
Mar. 28, 2008
Total views to date - 1,116
The media tart and the mailbag
Wind storms took the power out but we boxed on.
Apr. 3, 2008
Mayne Report - 1,086
Youtube - 17
Total views to date - 1103
Australia is selling the farm to China
Why is there no-one else speaking out on Chinese government takeovers?
May. 6, 2008
Mayne Report - 918
Youtube - 170
Total views to date - 1,088
Peter Costello claims victory
I couldn't make it, but we had a bit of fun with Cossie anyway.
Dec. 14, 2007
Mayne Report - 960
Youtube - 71
Total views to date - 1,031
Share purchases
Go here to view the world's biggest small share portfolio, which has been expanded by the following since you were last updated:
June 20
Zimplats Holdings: bought 37 at $13.55
June 19
Northern Energy Corporation: bought 271 at $1.85
Tune in to Business View tomorrow
Finally, if you get Foxtel, tune in to Business View on Sky Business Channel from 9am tomorrow as I'm on the panel which will be chewing over the issues of the week, such as Babcock, Transurban, Dick Pratt and various other topics.
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.
First thing's first, check out today's hard-hitting new video calling for OZ Minerals shareholders to vote down Owen Hegarty's outrageous $10.7 million golden goodbye.
It's all happening folks - Babcock vehicles are plunging again, Dick Pratt is facing jail, the market has tumbled another 1.3% and I've been a media tart of the first order.
Today Tonight dropped around at lunch time for a chat about Dick Pratt's potential jailing for lying to the ACCC, so tune in at 6.30pm. And have a listen to this chat about Pratt with 2UE's John Stanley at 4.20pm today.
We made two videos at the time Pratt pleaded guilty of running the cartel with Amcor. Watch the video which was filmed at the All Nations pub in Richmond, where the dirty deed was done, and watch the other commenting on Pratt's insincere apology.
Whilst Pratt deserved to go to jail for being involved in our worst known cartel, it is bit rough given that there weren't criminal sanctions at the time and the Rudd Government is still yet to introduce the relevent legislation.
Yet somehow he still faces some porridge time despite doing a deal which he clearly thought was done and dusted.
So why has ACCC chairman Graeme Samuel re-opened the file, because that is clearly Pratt's view based on today's statement by his lawyer Leon Swier, which included the following:
"Richard Pratt and his wife and their family are shocked by this new ACCC proceeding."
"Visy's and Mr Pratt's dispute with Graeme Samuel's ACCC were resolved last year following mediation before a former high court judge."
"The federal court subsequently ruled and imposed penalties. Mr Pratt expected that in resolving his disputes with Graeme Samuel's ACCC he would be given a fair go."
Leon Swier has Australia's best record in keeping corporate high flyers out of jail as he acted for both Steve Vizard and John Elliott - the two Melbourne business figures who most deserved to do time for their actions.
With the biggest Liberal Party donor in the land now gunning for Samuel's head, it makes Wayne Swan's overdue decision on whether to re-appoint him for another five year term at the ACCC a highly charged political decision.
Jeff Kennett used to privately refer to Samuel as "turn coat number two" after he lost office in 1999. "Turn coat number one" was his great mate Ron Walker who somehow was allowed to keep running the Grand Prix and Commonwealth Games despite being the most prolific bag man in Liberal Party history.
Samuel is a former Liberal Party Treasurer too, who once stood for preselection in Peter Costello's seat of Higgins. However, he is also a passionate believer in competition and free markets, so maybe he's just doing what he really thinks now that his Liberal mates are out of office.
Say what you like about cartels, I just don't believe Sameul would have done this to the biggest Liberal donor in the land, days before his term was due to expire, if John Howard had won last year's election.
However, it is very unlikely he'll do time with a suspended sentence much more likely, given his good record, the earlier ACCC pre-bargain, the discount that applies to guilty pleas and Australia's woeful record at dealing with corporate crooks.
Babcock
After going in a bit too hard on Babcock & Brown with 702 ABC Sydney's Drive presenter Richard Glover in this interview last Friday, it was agreed that an update interview was required to square the ledger after Babcock fired off this strong rebuttal.
However, Transurban's decision to raise $1 billion in equity, slash its dividend and declare its previous debt-laden business model dodgy has had a big impact today, with poor old Babcock & Brown one of the major victims as its two biggest Australian funds suffered another day of double digit percentage falls.
Shares in B&B Power plunged 10c to a record low of 62 and B&B Infrastructure tumbled 11c to 80c, whilst Babcock & Brown itself was 28c weaker at $6.42 in a sharply lower market - still up more than 20% for the week, but 80% below last year's peak and less than the $13.65 price at which institutions injected $220 million just three months ago.
Go here to check out the way all this was couched with Richard Glover at 4.10pm this afternoon, along with our updated special package on Babcock's troubles.
Video traffic
We've got some figures on our most popular videos. There are 13 which have been viewed more than 1000 times as follows:
The Mayne Report Rich List
Australia's most comprehensive record of people who are worth more than $10 million.
May. 28, 2008
Total views to date - 3,881
Game over at Babcock & Brown
Goodbye Rich List, hello $50 billion bank workout.
Jun. 12, 2008
Total views to date - 3,023
Unveiling Costello tilt from Rudd's NYC strip club
Launching independent campaign in the federal election against treasurer Peter Costello for the seat of Higgins.
Nov. 19, 2007
Mayne Report - 94
Youtube - 2,234
Total views to date - 2,328
Sticking it to Jim Cramer
I defend the honour of Macquarie Bank.
Oct. 8, 2007
Mayne Report - 86
Youtube - 2,130
Total views to date - 2,216
Opes chairman's corruption hypocrisy
Peter Gillooly should butt out of the pokies debate and worry about Opes.
Apr. 14, 2008
Mayne Report - 1,831
Youtube - 47
Total views to date - 1,878
Campaign to have Owen Hegarty, the CEO of the new merged company.
Even footy legend Ronald Dale Barassi supports our Owen Hegarty campaign.
Apr. 17, 2008
Mayne Report - 1,296
Youtube - 207
Total views to date - 1,503
At budget lock-up for Crikey
Wayne Swan needs to relax his excessive budget lock-up security.
May. 14, 2008
Total views to date - 1,464
Phil Green's Babcock mea culpa
Compare and contrast Babcock and Macquarie on their broken models
Jun. 3, 2008
Total views to date - 1,338
Diverse offers from Tabcorp and Futuris
Today's mailbag included a pathetic Slater & Gordon offer, Tabcorp shareholder card and a funny Futuris offer.
Apr. 10, 2008
Total views to date - 1,183
Inside the MFS fiasco
The MFS cowboys copped a thoroughly deserved shellacking at today's EGM.
Mar. 28, 2008
Total views to date - 1,116
The media tart and the mailbag
Wind storms took the power out but we boxed on.
Apr. 3, 2008
Mayne Report - 1,086
Youtube - 17
Total views to date - 1103
Australia is selling the farm to China
Why is there no-one else speaking out on Chinese government takeovers?
May. 6, 2008
Mayne Report - 918
Youtube - 170
Total views to date - 1,088
Peter Costello claims victory
I couldn't make it, but we had a bit of fun with Cossie anyway.
Dec. 14, 2007
Mayne Report - 960
Youtube - 71
Total views to date - 1,031
Share purchases
Go here to view the world's biggest small share portfolio, which has been expanded by the following since you were last updated:
June 20
Zimplats Holdings: bought 37 at $13.55
June 19
Northern Energy Corporation: bought 271 at $1.85
Tune in to Business View tomorrow
Finally, if you get Foxtel, tune in to Business View on Sky Business Channel from 9am tomorrow as I'm on the panel which will be chewing over the issues of the week, such as Babcock, Transurban, Dick Pratt and various other topics.
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.