Chillin' out till it needs to be funded
While the boardroom vs London CEO battle in Olympus kept Dealmakers, auditors and regulators busy most of the last Quarter, the new battles which we will focus on are no less tawdry and seem value accretive for share trading. One of these is N Rothschild’s fight for mining giant Bumi Plc which he founded in Indonesia. The mining group’s Indonesian partners including Bakries that have thence withdrawn their objections to Nat Rothschild continue as co chairman are ousting Nat Rothschild out of the company he founded. The Bakries with Samin Tan own 29.9% of Bumi Plc and the board meeting is due on march 25, where the fighting is expected to subside with due compromises.
The other tussle in Wynn Resorts is even more interesting as seemingly a ex FBI Director investigated the Chairman and Founder and when found “unsuitable” his 15% ownership stake was bought back by the company , the drastically reduced supply immediately shooting the scrip up in the stock exchanges by 3% at close in Hongkong.(Wynn Resorts Macau)
The fight led by co founder and CEO Steve Wynn against Kazuo Okada who is already building his own Casino in the Phils and has been accused of improper payments to gaming regulators in the Phils ( Philippines) A Hongkong resident, Okada’s own company shares tumbled more than 20% as the erstwhile partner’s Macau Board also bought his stake a t a discount of 20% to $1.9 bln against a market price of $2.55 bln and the payment made on a staggered basis over 10 years on a pro note that pays only 2% interest. Okada claims Wynn made improper graft payments in the Macau market. Th einternal report against Okada found three dozen instances of Okada’s “improper activities for their own benefit in apparent violation of US Anti corruption laws”
Kazuo Okada’s universal Entertainment will be pursuing legal action against Wynn Resorts.
Olympus CEO Mike Woodford was fired on October 14 after he questioned board deals worth more than $1.7 bln. Later the board admitted their complicity in hiding losses of more than $ 2bln but the auditors KPMG refused to admit any complicity iesp during handover to new auditors E&Y. On expected lines, Mike Woodford after his vindication has been trying to drum up a financial bid to take over the comany to “lead it back to profit” as late as Christmas 7 weeks ago.
Wynn Resorts pushes out co-founder Okada (marketwatch.com)