I guess government will come to rescue, but condition is no dividend, nowdays no more free lunch, sp will trade below its NTA($1.2).
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I guess government will come to rescue, but condition is no dividend, nowdays no more free lunch, sp will trade below its NTA($1.2).
I think the Government will pull a rabbit out of the hat this week or next, given the independent report will be out on Thursday. The price recommendation from Com Com will probably stay, but John Key isn't about to let Chorus hang out to dry since it would reflect terribly on the National party.
Leaving this to drag out for four months would be political hari kari in my opinion. Will be interesting to see what happens.
So Longhaul everyone must be reading Alice in Wonderland currently actually I'd put more faith in that story than a rabbit coming out of the Govts hat at the moment, maybe Nightmare on Elm street would be more appropriate reading.
John Key is a deal maker, we know that. Now that he can't legislate, he will be looking at other deals that enable CNU to deliver on its contractual obligations and survive as a going concern. JK will also be highly aware of the damage this issue has caused to shareholders large and small and will be looking to reverse some of that damage. One thing JK has shown over the last few years is looking after big business, he's not about to stop.
Actually Longhaul,I had a reply from JKs office re our CNU plight my comments were duely noted and my email was sent to Tony Ryall as he is apparently in charge of these things, pass me another Tui, and by the way how do you reverse damage for shareholders that have sold out for massive losses already???
Wouldnt it improve his election chances if he could announce both cheaper broadband and fibre for all.Com Com have arrived at a $10 reduction in the price chorus can charge retailers for copper.
Maybe $5 reduction before the election might appease all without the need for high court intervention and repricing according to real cost .
So I see that Peter Dunne is about to be reinstated to cabinet. Anyone see a deal being made here?
Chalkie says - Some of the people most confused about this issue seem to be investors in Chorus, who are riled that regulatory action has roughed up their supposedly smoothly profitable path.
With that sort of comment no doubt his views will be shot down in flames
Debt at core of Chorus's fiscal fragility
http://www.stuff.co.nz/business/opin...scal-fragility