Barbados Shipping And Trading, Going, Going, Soon To Be Gone~The Advocate Newspaper Should Go Too
May 17th, 2007 · 5 Comments
Did I read the Advocate editorial of May 17, 2007 correctly. Just one day after bashing the Advocate newspaper, unapologetically so, we fan the pages this morning only to be confronted by an editorial laced with simplistic analysis. At BU we regard the fact that Barbados’s only conglomerate being gobbled-up by the more cash rich Trinidadian conglomerate, Neal & Massy as deserving of studious analysis. The Advocate editorial makes the obvious argument that market forces in any capitalist market will make decisions with the objective of creating shareholder value. At BU we say brilliant and profound!
A meeting called by the Board of Directors of BS&T for shareholders to seal the deal with Neal & Massy this evening was canceled because an injunction filed by Jeffery Kinch, a BS&T shareholder was upheld. Mr.Kinch filed on the grounds that BS&T had not provided enough information to BS&T shareholders to make informed decisions. To BU the action seemed redundant because BS&T through its mouthpiece, Sir Allan had indicated it would offer an adjournment because of the recent developments, a counter bid by Ansa Mcal, another T&T conglomerate and a local interest have declared their interest in making offers.
The action by Kinch who obviously acted on behalf of others clearly demonstrate that there have acted out of caution in the event BS&T and Neal & Massy tried any devious move!
BU find it interesting that the Prime Minister held a meeting with Sir Allan and the other parties in on the the deal on the eve of the meeting which was canceled. Prime Minister Owen Arthur is about to lead a fourth term government in an upcoming elections soon to be announced, BU have no doubt that a Neal & Massy deal is preferred by Arthur__and you ask why? Elementary my dear Watson! Neal & Massy is not a competitor of BS&T in Barbados, the outcome is minimum job losses when rationalization comes down the road. Ansa MaCal currently compete with BS&T in Barbados on several fronts in the distribution sector, likely outcome, job losses in the near term. The other party of Brewer and Co have not put sufficient information in the public domain but according to Neal & Massy Chairman Arthur Lok Jack they have contacted him to express an alliance should they be successful in acquiring BS&T.
What is the position of Barbados Underground?
It is realistic to consider the offers of Neal & Massy and Ansa McaL because no information is available on the Brewer deal. If we examine on the basis of a public good, BU goes with Neal & Massy, if we select based on creating shareholder value, then Ansa Mcal is the better offer on the table so far. A BU source indicate that we should expect counter offers to come in the near future! It troubles BU that if a Trinidadian company controls BS&T when the dust is settled that it would mean that between CLICO, another T&T mega company and the new owners of BS&T they would own significant real estate on the little island. What this portends in the future, your guess is as good as ours.
Our original story was triggered by a lousy article penned by the Advocate editorial staff. The trivializing of this important transaction was in poor taste and disrespected Barbadians. The unraveling events to date should have shown Anthony Bryan, the owner of the Advocate, that his frivolous treatment of a serious issues was ignorance shown to be at its best. BU also gives a brick bat to the Board of BS&T who have prematurely appointed six directors to a company which is not yet a legal entity.
Buckle-up folks we think it will be a rough ride.
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