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Old 28th Mar 2007, 14:44
  #22 (permalink)  
Re-Heat
 
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Clearly you have little understading of what "beancounters" (as you so disparagingly call us) also have up their sleeve as products in their firms - namely M&A advisory as well - the same as the investment banks.

You are utterly incorrect - the document is not simply a check-box requirement with the takeover panel - it is entirely aimed at the floating voters - many of whom were influenced by the plans (certainly not a "few" - who do you think the employee trust purchased the shares from? God?).

Clearly, the actions of the advisors is totally alien to you - let me explain in that case. These guys are working a minimum of 90 hours per week, trying to find hidden value in the business so that it can survive independently, and marketing the business to those who purchased large chunks of share capital in support of management during this episode (a certain Irish investor comes to mind, along with many others). On top of this, they are delivering advice to management on a daily basis, helping the directors to understand what actions to take, what messages to convey, and to whom else they should call on support if Ryanair have a realistic chance of a takeover.

Then comes a huge process of reviewing projections, tearing them apart, re-forecasting with greater knowledge, challenging management assumptions and attempting to place the business on an even more stable footing: those 16.2m euros of fees could potentially have added another 100m+ to the market capitalisation purely through a few insights generated by a couple of PhDs in Goldman Sachs.

Now, take a look at the free float of Aer Lingus, plus the fund managers who own shares as well - whose support has to be shored up - along with other non-strategic holdings...apart for the government of Ireland and the employee shares, the remainder (a large amount more than a "few floating voters") amounts to a huge task.

Justifying large fees? I don't think you really understand - fees are calculated on hours worked and a very thin slice of additional worth created (perhaps less than 0.5%).

I don't really see how you can complain too much about "employee pain" if you are indeed an employee who owns shares - the benefit flows back to you through the worth of those shares instead.

Of course, if you are a communist, simply tell us to save the argument...
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