seven-westrac mergerkwhat a great deal!, page-2

Continued from previous post...
As a shareholder, can I sell my house to Seven to get access to the $1billion cash? I will attach $10million debt to my house and sell it for $10million. My 'independent director' (Barmaid) reckons it's "fair and reasonable and therefore in the best interests of Seven shareholders in the absence of a superior proposal". What about all minority shareholders selling their residential houses to SEV? This way we can all gain access to the Seven cash and avoid paying any capital gains tax. What will Kerry say to that?
We all know Seven is trading at a discount to it's true worth. Herein lies my second big problem. Seven is issuing shares to buy the business. Thereby, Kerry Stokes gets all the upside in the share price. It would have been better for shareholders if WestTrac was bought with cash.
What about the Independent directors such as Elizabeth Boling who have said it is "fair and reasonable". You gonna believe her??? Elizabeth has been a Seven director since 1993, well over 15 years. Prior to that she was employed by Pacific magazines which is owned by Seven. She has known Kerry Stokes for decades. Who now still thinks she is independent? Besides she is hardly the smartest cookie in the jar. Remember she said and did nothing when Stokes lost $250million on the C7 court case and appeal, lost $44million on GRD, lost $200million on WAN (by buying at prices upto $16/share) and lost millions on buying Telstra and other "listed investments". Even "I knew not to get sucked into buying Telstra shares for its dividend yield" chuckled my Barmaid.
You would assume the directors would be furiously buying SEV shares if they felt WestTrac is being bought at a fair and reasonable price. Nope. No directors buying since announcement. And how many shares has our lovely Elizabeth got? 0! Yep nothing, zip, nought.
I will vote NO and I hope everyone else votes NO as well. I for one will not be getting screwed over like one of Kerry Stokes 3 ex wifes. We only need 25% of (non Kerry Stokes) shareholders (by value) to scuttle the deal. Achievable.
"In Life there are Winners and Losers", Bill Gates
I say, "In life there is Kerry Stokes and Seven shareholders"
My email, [email protected]
This is the second in a series of articles that I will be posting on the merger.
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