Tuesday, January 23, 2007

Alinta proposed buyback running into road blocks

The proposed management buyout of Alinta is getting hit with a lot of roadblocks. Firstly the backlash over an alleged conflict of interests by adviser Macquarie Bank has undermined the deal causing shareholders to be very angry. The buyout has also stirred up and encouraged rivals to emerge. The rivals are rumoured to include Singapore Power's SP AusNet, CKI's Spark Infrastructure and Origin Energy.

Meanwhile senior Macquarie Bank (ASX:MBL) executives are believed to be deeply unhappy about the damage to the firm's reputation caused by its involvement in the proposed management buyout.

This is a good sign for Alinta shareholders as there may be a bidding war for the company. It is also good to see Macqaurie Bank is embarrassed about their handlings in the buyout. This shows management are looking at the best long term interests for the company. Alinta management on the other hand can not be trusted after the proposed buyout as it feels like amnagement was trying to pull one over the shareholders and get the company cheap.

No comments: