CBD
It seems not even $13 billion of write-downs can dislodge the genteel facade erected by Rio Tinto shareholders.
The gargantuan write-down - a couple of billion more than the $11 billion federal budget deficit for this year that Deloitte Access Economics predicts Wayne Swan will unveil on Tuesday - cost Rio chief executive Tom Albanese his job and sparked angry scenes at the company's London AGM last month.
But Sydneysiders who turned out for the Australian edition of the dual-listed miner's AGM on Thursday were much more forgiving.
"We had such a wonderful AGM today, all our shareholders were so polite, so considerate, I really enjoyed today's meeting," Rio chairman Jan du Plessis said later.
"I always say chairmen are never supposed to enjoy an AGM, but in fact today was really nice. It was fun, the people were respectful and things were just fine."
The love affair seems mutual. Earlier in the meeting, a shareholder had said to du Plessis that he was the "politest" chairman he had ever come across.
The race is on
Miniature motor sport mogul Bernie Ecclestone wants to get a float of the formula one empire away on the Singapore exchange by October, but there are a couple of flies in the $10 billion ointment pot.
They would be Victorian Premier Denis Napthine and the state's Tourism Minister Louise Asher, who have yet to come to the table to begin negotiations over a new contract to stage the loss-making race in Melbourne.
The deal runs out in 2015, but in March, Australian Grand Prix chairman Ron Walker said he was confident of striking a new accord.
"The government wants to get on with it and Bernie wants to get on with it," chairman Walker told Fairfax Media.
"They are going to float the company and he [Bernie] likes to have all the contracts done, and it will be at a rate that suits the [Victorian] Treasury."
That was two months ago. While Walker seemed sure the state government was keen to quickly strike a deal, CBD isn't quite so sure.
With the cost of the race on the nose - especially the formerly secret licence fee paid to F1, which hit $34.2 million this year - and the float fast approaching, delay could be the government's friend. This week, Asher confirmed to CBD that talks had yet to start. "When the government commences negotiations on the future of the grand prix, its retention will be considered in terms of the event's capacity to reduce costs and to offer value for money," she said.
Ecclestone snubbed the Melbourne race in March and isn't due back in the country until September, in the lead-up to the Singapore Grand Prix. That's cutting it awfully fine.
In the picture
The eagle eyes of CBD's ever-vigilant spies have been working overtime, this time spotting the English Football League chairman Greg Clarke and former head of Lend Lease standing behind the man of the moment, Sir Alex Ferguson, as the stalwart Manchester United manager announced his retirement.
British-born Clarke has a long association with the world game - he lost £500,000 while chairman of Leicester City when the club went into administration in 2002. He then came down under to Lend Lease, which he ran until 2009, but he never kicked the roundball habit.
While he tried to embrace the concept of the Sherrin, he was sometimes seen at various watering holes watching the rugger or EPL.
Hit and miss
This week's prize for press release most tenuously linked to a pop cultural event goes to Jackie Behrend, of PPR, and client Bart Mead, of Propell National Valuers, for an effort on Thursday warning the return of Nine's reno show The Block to TV next week could cut property values. Botched DIY renovations are apparently a turn-off for home buyers. Who knew?
Got a tip?
bbutler@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
The article reports that a gargantuan $13 billion write-down cost Rio Tinto chief executive Tom Albanese his job and sparked angry scenes at the company's London AGM. Despite that turmoil overseas, the company's Australian AGM was notably more forgiving.
According to the article, Sydney shareholders were polite and considerate at the Australian edition of Rio Tinto's AGM. Chairman Jan du Plessis said he enjoyed the meeting, calling it fun and respectful, and one attendee even complimented him as the "politest" chairman they'd met.
The article contrasts angry scenes at Rio Tinto's London AGM—linked to the large $13 billion write-down—with a much more genteel and forgiving atmosphere at the Australian AGM. The differing reactions appear tied to local shareholder sentiment and the fallout from the write-down.
Yes. The article notes Bernie Ecclestone wants to float the Formula One empire on the Singapore exchange by October, although the potential $10 billion float faces several unresolved issues, including contract negotiations tied to the Melbourne race.
The article highlights that Victorian Premier Denis Napthine and Tourism Minister Louise Asher had not yet begun negotiations on a new contract to stage the Melbourne Grand Prix, and that the race is loss-making. It also points out the formerly secret F1 licence fee hit $34.2 million this year—details potential investors should note.
The piece suggests a delay in government negotiations could be helpful to the state given the high costs of staging the race, and unresolved contracts may complicate plans to float Formula One. For investors, the lack of finalized hosting agreements and sizable licence fees are relevant factors when assessing the float's timing and valuation.
Greg Clarke is noted as the English Football League chairman who stood with Sir Alex Ferguson at the manager's retirement announcement. The article also says Clarke previously lost £500,000 as chairman of Leicester City when the club entered administration in 2002 and later ran Lend Lease until 2009—details that may interest investors tracking executives with sports and corporate backgrounds.
Yes. The article cites a press release from Jackie Behrend (PPR) and Bart Mead (Propell National Valuers) warning that the return of Nine's renovation show The Block could lower property values because botched DIY renovations can put off home buyers. Property investors should be aware that media-driven renovation trends can affect buyer perceptions and local market demand.
Call 1300 880 160
Start a chat
Schedule a call
