Thursday, December 6, 2007

Sky City Management: blind, deaf and numb

The absolute garbage that masquerades as management at Sky City Entertainment has got to come to a logical conclusion some time soon.

http://directrooms.com/new-zealand/img/hotel-picture/hotel-8254-68947.jpg

The lobby of the 5 star Sky City Grand Hotel

The company let the market know that the only remaining suitor, which was rumoured as US private equity funds TPG and Apollo Management, was still attempting to arrange financing for a takeover bid.

Sky City management have been effusive, misleading and amateurish in their attempts to keep the market informed accurately and sheppard a deal with a prospective buyer.

If market experience from this end is as deficient as we know it, one can only imagine how the prospective buyer was treated.

Were Sky City management clear, precise and upfront with the two rumoured funds?

I seriously doubt it.

Now I'm not displeased that a deal looks like it is going to fall through but can you imagine this motley crew turning around the company and having the potential to put things back on track?

Not bloody likely mate.

Brook Asset Management, a large Sky City shareholder, has been angling for a board clean out for a long time and I would have to concur with that, for I cant see a way forward with sub standard people at the helm.

TPG and Apollo Management have apparently fallen short in the moola stakes because of the global "credit crunch" but I'm finding that a little hard to stomach considering the timing of the initial bid interest in September and at that time easy credit had already become a thing of the past.

What shareholders need is a clear assessment of where things are with any bid and it is certainly not up to Sky City management to wait around for a possible buyer to raise funds.

There needs to be an understanding from this last possible bidder that they are serious, give them a definite deadline-Sky City management have moved their deadline several times-and if they are not interested tell them to bugger off so we can all move on.

Without the current board of course.

You can bet the current state of indecision will also be permeating the business side of the company as well, not forgetting the considerable amount of money it will be costing shareholders in putting any bid together.

Roll the dice.

Disclosure: I own Sky City shares



C Share Investor 2007

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