Market cap of Telecom up by 9% or over $400m since Joyce handed them not only the vast majority of the UFB deal but an underwrite which meant that they could not lose on the arrangement.
That $400m is what shareholders think is the NPV of the deal to them. That is their profit discounted back to present day values.
Nice if you can get it.
Joyce = Muldoon Mark II.
CEOs exit package just went up by $30m I reckon.
Government Guaranteed Profits – Nice for some and damned expensive for everyone else.
So are you saying that he made a pig’s ear of it?
Well, telecommunications in this country was made “pig’s ear” back in 1987 when the 4th Labour government decided to deregulate and sell Telecom. We’ve been paying for that mistake ever since to the tune of ~$20b.
How to make life far more expensive – add “competition” to basic infrastructure while making a natural monopoly privately owned.
Shareprice is still lower than it was 12 months ago. To be honest its just that the market now has certainty and splitting the company in two should add value. Never know Telecom might run themselves properly as two focused companies instead of one big badly run one. Might even buy back in myself.
We are all hoping that all these people can show they do not have any financial interest in Telecom, even at arms’ length. That would be a ‘very bad look’ indeed, if they did.
And if the other guys had got the contract their share price would have dropped presumably
The contract was awarded on price, not on the profit that the successful bidder would make out of it.
So ahh how do you explain this? http://www.stuff.co.nz/business/industries/5066038/Telecom-downgrade-flagged