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<?xml version='1.0' encoding='UTF-8'?><?xml-stylesheet href="http://www.blogger.com/styles/atom.css" type="text/css"?><feed xmlns='http://www.w3.org/2005/Atom' xmlns:openSearch='http://a9.com/-/spec/opensearchrss/1.0/' xmlns:blogger='http://schemas.google.com/blogger/2008' xmlns:georss='http://www.georss.org/georss' xmlns:gd="http://schemas.google.com/g/2005" xmlns:thr='http://purl.org/syndication/thread/1.0'><id>tag:blogger.com,1999:blog-3987863247333576686</id><updated>2024-02-20T00:36:27.715+00:00</updated><category term="Ireland"/><category term="Irish"/><category term="business"/><category term="Dublin"/><category term="Anglo Irish Bank"/><category term="AIB"/><category term="Australia"/><category term="Ryanair"/><category term="airlines"/><category term="takeover"/><category term="Austria"/><category term="Bank of Ireland"/><category term="Caribbean"/><category term="Credit Suisse"/><category term="European Commission"/><category term="Fianna Fail"/><category term="Fine 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Evil"/><category term="Rex Comb"/><category term="Rhinebridge"/><category term="Rietumu"/><category term="Riga"/><category term="Riverdeep"/><category term="Robert Wagner"/><category term="Rolling Stones"/><category term="Royal Institute of Chartered Surveyors"/><category term="Rugby World Cup"/><category term="Russia"/><category term="Ryan"/><category term="SAR"/><category term="SBPost"/><category term="SIV-lite"/><category term="San Francisco"/><category term="Sands"/><category term="Saphir"/><category term="Sean Fitzpattrick"/><category term="Sean Melly"/><category term="Sean Mulryan"/><category term="Sean Quinn"/><category term="Shelbourne Development"/><category term="Shell"/><category term="Societe Generale"/><category term="Solid World"/><category term="Sony"/><category term="Sony Pictures"/><category term="Stan O'Neal"/><category term="Stanley Ho"/><category term="Stefanie Powers"/><category term="Steve Wynn"/><category term="Structured Finance"/><category term="Structured Investment Vehicles"/><category term="Sunday Business Post"/><category term="Supernova Capital"/><category term="Tele2"/><category term="Telefonica"/><category term="Telekom Austria"/><category term="Temple Bar"/><category term="Thales"/><category term="Tiarnan O’Mahony"/><category term="Tobacco"/><category term="Tony Harrison"/><category term="Tony O'Reilly"/><category term="Tony Ryan"/><category term="U2"/><category term="US"/><category term="Umbrella Corporation"/><category term="Valentia"/><category term="Vasorum"/><category term="Viktor Kozeny"/><category term="Vodafone"/><category term="Wachovia"/><category term="Wealth Options"/><category term="William Hill"/><category term="Wynn"/><category term="Wynn Resorts"/><category term="advertising"/><category term="aircraft leasing"/><category term="airports"/><category term="banking"/><category term="banks"/><category term="billionaire"/><category term="bonds"/><category term="budget"/><category term="carrier"/><category term="cigarettes"/><category term="clinic"/><category term="collaterised"/><category term="collaterized"/><category term="commercial property"/><category term="counselling"/><category term="debt"/><category term="debt obligation"/><category term="dentist"/><category term="doctor"/><category term="economy"/><category term="entrepreneur"/><category term="environment"/><category term="expansion"/><category term="extradition"/><category term="financier"/><category term="flotation"/><category term="franchise"/><category term="franchisee"/><category term="franchisor"/><category term="fraud"/><category term="grief"/><category term="horror"/><category term="hotel"/><category term="hotels Quinn Group"/><category term="immigrants"/><category term="jobs"/><category term="low-cost"/><category term="marketing"/><category term="mobile"/><category term="movies"/><category term="mutual fund"/><category term="no-frills"/><category term="passports"/><category term="population"/><category term="pricing"/><category term="private equity"/><category term="retail"/><category term="rogue"/><category term="rugby"/><category term="sipowicz"/><category term="syndication"/><category term="tax"/><category term="telco"/><category term="telematics"/><category term="television"/><category term="terrorism"/><category term="trading"/><category term="unemployment"/><title type='text'>Stet</title><subtitle type='html'>A random blog of Irish business news, views and spews</subtitle><link rel='http://schemas.google.com/g/2005#feed' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/posts/default'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/'/><link rel='hub' href='http://pubsubhubbub.appspot.com/'/><link rel='next' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default?start-index=26&max-results=25'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><generator version='7.00' uri='http://www.blogger.com'>Blogger</generator><openSearch:totalResults>35</openSearch:totalResults><openSearch:startIndex>1</openSearch:startIndex><openSearch:itemsPerPage>25</openSearch:itemsPerPage><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-3250020787363722709</id><published>2009-01-21T21:49:00.009+00:00</published><updated>2009-01-22T23:10:55.140+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Anglo Irish Bank"/><category scheme="http://www.blogger.com/atom/ns#" term="Bank of Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="banks"/><category scheme="http://www.blogger.com/atom/ns#" term="Brian Goggin"/><category scheme="http://www.blogger.com/atom/ns#" term="Donal O'Connor"/><category scheme="http://www.blogger.com/atom/ns#" term="Dublin"/><category scheme="http://www.blogger.com/atom/ns#" term="Sean Fitzpattrick"/><title type='text'>"Fear Stalks the Market"</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbyEJEmD8zZKQQPYF6Hz1G6kvqBwVwhq-yhHncb1LdsOjAIXtwZ_YoQmwujTEzeZ5sNVgmgKYUcklUPkY-X_v_cvImVqrOtc2N_hTopvY9fLbIzMDmxvsUzY9bzUkODeZ0MOVquMfeBbg/s1600-h/fear+pic.bmp"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 194px; height: 320px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbyEJEmD8zZKQQPYF6Hz1G6kvqBwVwhq-yhHncb1LdsOjAIXtwZ_YoQmwujTEzeZ5sNVgmgKYUcklUPkY-X_v_cvImVqrOtc2N_hTopvY9fLbIzMDmxvsUzY9bzUkODeZ0MOVquMfeBbg/s320/fear+pic.bmp" alt="" id="BLOGGER_PHOTO_ID_5293874939682894178" border="0" /></a>The diagnosis of the banking pandemic may be clearer, but the prognosis remains wholly uncertain. In the UK, investors in Barlcays and Lloyds are betting that the government will have to step in to nationalise the institutions, while in Ireland, mandarins have been talking up the strength of the two main players – Bank of Ireland and Allied Irish Banks, as they stress that no moves will be made to bring the pair into public ownership. Their current share prices “are not indicative”, according to Irish Central Bank governor John Hurley, of their true health, who also said today in Dublin that “fear stalks the market”. But the banks still have to be shifted to the MRI scanner to obtain deep insight. Until they lay their cards on the table, investors can’t take Hurley’s view as gospel, even if it is actually true. Last summer, speaking to journalists following Bank of Ireland’s AGM in Dublin, now outgoing chief executive Brian Goggin brushed aside suggestions that the blame for the on-going collapse of the domestic property market should be laid squarely at the feet of Ireland’s banks. He “completely and utterly” rejected the notion. His objections would hardly convince a jury. The property rollercoaster had been fuelled by the banks: cheap finance and a too-cosy relationship with property developers were important ingredients in the boom. So too, the laissez-faire attitude of the government, whose coffers were swelled by property taxes that fuelled its public spending spree. The government, said one leading Irish economist recently, should have been taxing mortgages to cool the market, not offering borrowers tax relief. It should also have been patently obvious that its over-reliance of property-related taxes was a highly dangerous strategy. And as Anglo Irish Bank, the poster-boy institution for the boom years, heads for nationalisation, the true extent of the fallout won’t be clear for some time. And even at Anglo, where new chairman Donal O’Connor is now navigating a course through the rapids without even a paddle, plenty of more nasty surprises could lay in wait. But O’Connor, a former managing partner at PriceWaterhouseCoopers, may already have some insight in that regard. He replaced Sean FitzPatrick before Christmas following the revelation that his predecessor had hidden €87m in loans from auditors. O’Connor and FitzPatrick had been firm acquaintances. Mr FitzPatrick recounted to the UK’s Daily Telegraph back in 2002 how he and his wife Triona had spent one of their recent evenings attending a play in Dublin with O’Connor and his wife, Vera. No doubt FitzPatrick tried to imbue O’Connor with some insight into Anglo Irish Bank. Maybe he just didn’t listen.<a href="http://http//www.telegraph.co.uk/finance/2835628/Early-starts-and-busy-days-achieve-the-right-results.html">http://www.telegraph.co.uk/finance/2835628/Early-starts-and-busy-days-achieve-the-right-results.html</a><a href="http://online.wsj.com/article/BT-CO-20090121-708628.html">http://online.wsj.com/article/BT-CO-20090121-708628.html</a><a href="http://online.wsj.com/article/BT-CO-20090121-708628.html">http://www.rte.ie/business/2009/0121/financial.html</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/3250020787363722709/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=3250020787363722709' title='75 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/3250020787363722709'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/3250020787363722709'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2009/01/fear-stalks-market.html' title='"Fear Stalks the Market"'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbyEJEmD8zZKQQPYF6Hz1G6kvqBwVwhq-yhHncb1LdsOjAIXtwZ_YoQmwujTEzeZ5sNVgmgKYUcklUPkY-X_v_cvImVqrOtc2N_hTopvY9fLbIzMDmxvsUzY9bzUkODeZ0MOVquMfeBbg/s72-c/fear+pic.bmp" height="72" width="72"/><thr:total>75</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-4144899356138741029</id><published>2008-02-03T18:00:00.001+00:00</published><updated>2009-01-22T23:11:32.198+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="AIB"/><category scheme="http://www.blogger.com/atom/ns#" term="Allfirst"/><category scheme="http://www.blogger.com/atom/ns#" term="Barings"/><category scheme="http://www.blogger.com/atom/ns#" term="France"/><category scheme="http://www.blogger.com/atom/ns#" term="fraud"/><category scheme="http://www.blogger.com/atom/ns#" term="Jerome Kerviel"/><category scheme="http://www.blogger.com/atom/ns#" term="John Rusnak"/><category scheme="http://www.blogger.com/atom/ns#" term="Nick Leeson"/><category scheme="http://www.blogger.com/atom/ns#" term="rogue"/><category scheme="http://www.blogger.com/atom/ns#" term="Societe Generale"/><category scheme="http://www.blogger.com/atom/ns#" term="trading"/><category scheme="http://www.blogger.com/atom/ns#" term="United States"/><title type='text'>Kerviel. Scene 1. Take 1.</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVofaazxMIemhQlbO7DkLYro9uyHt6cZPYp_wJEgrA9GNqJq5_8BY5MJ_7KVvKUDkPSJjIeaLk1uMbh4S0OLuWFj9mj_CVF795ijvcifW79-Ia_gH0doxjWqSlULnXlncqQXG5r1HeXxk/s1600-h/Societe+Generale.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVofaazxMIemhQlbO7DkLYro9uyHt6cZPYp_wJEgrA9GNqJq5_8BY5MJ_7KVvKUDkPSJjIeaLk1uMbh4S0OLuWFj9mj_CVF795ijvcifW79-Ia_gH0doxjWqSlULnXlncqQXG5r1HeXxk/s320/Societe+Generale.jpg" alt="" id="BLOGGER_PHOTO_ID_5162817211833228226" border="0" /></a><o:p></o:p>Poor Jérôme Kerviel. Fame is often hard won, infamy easier so.<o:p> </o:p>His dubious accolade as the top of the rogue trader league has unearthed an unsavoury insight into Société Générale, and raised questions over just how much of a blind eye was turned to Kerviel’s sleights of hand.<o:p></o:p> Remember, that at one stage the young Kerviel was making substantial profits on his unauthorised deals – so much so, in fact, that he didn’t even know how to come clean and tell his superiors that he made almost €1.5bn for the bank. Instead, he continued to hide his activities, leading to the mess that he, and the bank, find themselves in now. But Kerviel’s testimony to date has also exposed some lax supervision. He took no holiday in 2007, afraid to hand over his positions to a colleague who would undoubtedly smell a rat. But no-one seemed perturbed that Kerviel wasn’t heading for the slopes or the <st1:country-region><st1:place>Côte d’Azur</st1:place></st1:country-region> for a few days’ break. Even he has expressed surprise that the biggest warning bell of all – his unwillingness to relinquish his positions – went completely ignored.<o:p> </o:p> And what life for Kerviel now? Book rights, a movie? Or, as in Nick Leeson’s case, commercial manager of a non-descript football team in the west of <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>. It’s a big come down from quaffing champagne and downing cocktails in <st1:country-region><st1:place>Singapore</st1:place></st1:country-region>.<o:p> </o:p> But John Rusnak, the <st1:country-region><st1:place>US</st1:place></st1:country-region> trader who racked up a $700m loss at AIB’s subsidiary Allfirst, seemed like he was already thinking of the movie synopsis before he was shipped off to prison to serve over seven years. What’s more, he also claimed he was in a similar frame of mind to Kerviel, his conscience nagging at him to own up. But that was at a stage when Rusnak was $100m in the red, not even making a profit.<o:p> </o:p> In Rusnak’s last interview, with the Baltimore Sun, before he went to prison, he spoke about how he could have stolen almost any amount he wanted to from Allfirst.<o:p> </o:p> “I had a lot of authority,” he said. “If I was looking to profit, I would have shipped $20m out of the country and then left. There was very little oversight. But that's not what happened." He said he realised he was in a spot of bother when he had lost a "minuscule" amount - $100m.<o:p> </o:p> "Every single day I was there, I should have reported the losses and stopped trading," he continued. "It was my inability to say no and admit failure. I worried every day, and every night I couldn't sleep. I knew I was betraying people's trust.”<o:p> </o:p> But here’s where the appeal, surely, for the <st1:place>Hollywood</st1:place> types should have kicked in. Rusnak had to tell his kids he was going to prison. "We're still going to be a family,” he told them. “But Daddy did something wrong. It's like someone cheated on a test at school. I cheated at work, and then I told the truth. And now I have to go away for a while." Perhaps not Oscar potential, but it has TV movie written all over it. Kerviel should pay heed. He’s likely going to have a few years in a confined space to ponder his past. He’ll have to think of a new way to make a living. Script consultant may just be one of them.<a href="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/27/ccsocgen127.xml">http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/27/ccsocgen127.xml</a><o:p></o:p> <a href="http://www.tribune.ie/article.tvt?_scope=TribuneFTF&amp;id=10321&amp;SUBCAT=&amp;SUBCATNAME=&amp;DT=02/02/2003%2000:00:00&amp;keywords=kleenex&amp;FC">http://www.tribune.ie/article.tvt?_scope=TribuneFTF&amp;id=10321&amp;SUBCAT=&amp;SUBCATNAME=&amp;DT=02/02/2003%2000:00:00&amp;keywords=kleenex&amp;FC</a>= <a href="http://www.baltimoresun.com/">http://www.baltimoresun.com</a><a href="http://www.baltimoresun.com/"></a><a href="http://www.baltimoresun.com/">http://www.jeromekerviel.com</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/4144899356138741029/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=4144899356138741029' title='6 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4144899356138741029'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4144899356138741029'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2008/02/kerviel-scene-1-take-1.html' title='Kerviel. Scene 1. Take 1.'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVofaazxMIemhQlbO7DkLYro9uyHt6cZPYp_wJEgrA9GNqJq5_8BY5MJ_7KVvKUDkPSJjIeaLk1uMbh4S0OLuWFj9mj_CVF795ijvcifW79-Ia_gH0doxjWqSlULnXlncqQXG5r1HeXxk/s72-c/Societe+Generale.jpg" height="72" width="72"/><thr:total>6</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-3799158918255342294</id><published>2007-11-15T16:51:00.001+00:00</published><updated>2007-11-15T16:57:30.949+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="Dublin funds"/><category scheme="http://www.blogger.com/atom/ns#" term="FDI"/><category scheme="http://www.blogger.com/atom/ns#" term="IDA"/><category scheme="http://www.blogger.com/atom/ns#" term="Industrial Development Agency"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><title type='text'>Vets aid ailing Celtic Tiger</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_BfisK1ypl5ObdyX6fX8hQd7gvpx80PiIkiuXSJlUBnB2f4Q-X_ZLyeagRjsDJTyot-Wz-M-hzUBUCYXQDhEUmAxrIUWs_pcnRrKUn99cXCxkzE5tnvA-To87E9mc9VBqGmQJX75HnY0/s1600-h/IDA+1.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_BfisK1ypl5ObdyX6fX8hQd7gvpx80PiIkiuXSJlUBnB2f4Q-X_ZLyeagRjsDJTyot-Wz-M-hzUBUCYXQDhEUmAxrIUWs_pcnRrKUn99cXCxkzE5tnvA-To87E9mc9VBqGmQJX75HnY0/s320/IDA+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5133110954034124786" border="0" /></a><o:p></o:p>The Industrial Development Agency (IDA), charged with luring billions of dollars of investment to <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>’s shores from companies such as Microsoft, Google, Wyeth and Ebay, could do well to cast an eye over its own public face from time to time.<o:p></o:p> ‘Why <st1:city><st1:place>Dublin</st1:place></st1:city> for Asset Management?’ asks the website, citing reasons such as a highly skilled workforce, ultra modern telecommunications (many would disagree), excellent air transport infrastructure (another bugbear) and the low corporate tax rate.<o:p></o:p> And don’t forget, the St Bernard Veterinary Hospital.<o:p></o:p> The what?<o:p></o:p> Exactly. One link on the IDA website should direct users to the Dublin Funds Industry Association – a body which has changed its name to the more all-encompassing Irish Funds Industry Association. However, the link on the IDA website has never been updated, and instead sends browsers to the above named pet clinic. Even more curiously, the clinic is based in <st1:place><st1:city>Chalmette</st1:city>, <st1:state>Louisiana</st1:state></st1:place>, but using an Irish domain name.<o:p></o:p> Good to see the IDA on top of its game.<o:p></o:p> Note to self: check links on website.<o:p> </o:p> <a href="http://www.idaireland.com/home/index.aspx?id=136">http://www.idaireland.com/home/index.aspx?id=136</a><o:p> </o:p> <a href="http://www.dfia.ie/">http://www.dfia.ie/</a><o:p> </o:p> <a href="http://www.irishfunds.ie/">http://www.irishfunds.ie/</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/3799158918255342294/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=3799158918255342294' title='17 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/3799158918255342294'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/3799158918255342294'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/vets-aid-ailing-celtic-tiger.html' title='Vets aid ailing Celtic Tiger'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_BfisK1ypl5ObdyX6fX8hQd7gvpx80PiIkiuXSJlUBnB2f4Q-X_ZLyeagRjsDJTyot-Wz-M-hzUBUCYXQDhEUmAxrIUWs_pcnRrKUn99cXCxkzE5tnvA-To87E9mc9VBqGmQJX75HnY0/s72-c/IDA+1.jpg" height="72" width="72"/><thr:total>17</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-1238835287011352908</id><published>2007-11-14T00:25:00.000+00:00</published><updated>2007-11-14T17:44:19.958+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="acquisition"/><category scheme="http://www.blogger.com/atom/ns#" term="Arun Sarin"/><category scheme="http://www.blogger.com/atom/ns#" term="Iain MacDonald"/><category scheme="http://www.blogger.com/atom/ns#" term="IAWS"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Jim Mountjoy"/><category scheme="http://www.blogger.com/atom/ns#" term="Michael Smurfit"/><category scheme="http://www.blogger.com/atom/ns#" term="O2"/><category scheme="http://www.blogger.com/atom/ns#" term="Perlico"/><category scheme="http://www.blogger.com/atom/ns#" term="takeover"/><category scheme="http://www.blogger.com/atom/ns#" term="Tele2"/><category scheme="http://www.blogger.com/atom/ns#" term="Telefonica"/><category scheme="http://www.blogger.com/atom/ns#" term="Vodafone"/><title type='text'>Cold call for Vodafone</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7NflBKNYXLt06FEYJKQRlymoudFEm7WRpoNAZFlteP76mfbW71TKzpB9gR2k3CbEWJ7m6Ozkn2OodTgTSZ_0fAeI_VGaNV6nr9UEWIRPc2r2p6WyqMw_tdel_RGSBKoGT2q7hguOLoFE/s1600-h/Vodafone+1.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7NflBKNYXLt06FEYJKQRlymoudFEm7WRpoNAZFlteP76mfbW71TKzpB9gR2k3CbEWJ7m6Ozkn2OodTgTSZ_0fAeI_VGaNV6nr9UEWIRPc2r2p6WyqMw_tdel_RGSBKoGT2q7hguOLoFE/s320/Vodafone+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5132486115168879538" border="0" /></a><o:p></o:p>For Vodafone, this is small beans. For Perlico investors including Michael Smurfit, it’s payback time.<o:p></o:p> Yesterday the global mobile giant said that it had agreed to buy Irish telco Perlico in a deal that values the six-year-old firm at an astonishing €80m. An upfront cash-payment of €32m will be made, with the remaining earn-out dependent on future performance.<o:p> </o:p> And already it looks as if Vodafone may have overpaid.<o:p> </o:p> Even assuming that the acquisition price of Perlico remained €32m with no earn-out, Vodafone has paid €512 for each of the Irish firm’s 62,500 subscribers. Last year, Perlico rejected a takeover approach from Telefonica-owned O2. Maybe O2 saw the real value of the company.<o:p> </o:p> Last month, Vodafone paid stg£537m (€773m at the time), for Tele2 in <st1:country-region><st1:place>Italy</st1:place></st1:country-region> and <st1:country-region><st1:place>Spain</st1:place></st1:country-region>. That gave Vodafone an additional 3m fixed-line subscribers, making the acquisition cost per customer just €257 – about 50% less per head than the cost of Perlico. And remember, that’s only if Vodafone doesn’t have to stump up the outstanding €48m for the Perlico business.<o:p> </o:p> What’s more, Vodafone is buying an operator that has done nothing yet but haemorrhage cash.<o:p> </o:p> Latest <st1:personname>accounts</st1:personname> for Perlico Communications show that it generated turnover of €4.2m in 2005, up from €1.1m the previous year, and it reported an operating loss of €2.2m, compared to an operating loss of €1m in 2004. Assuming Perlico had even 55,000 customers during 2005, it means that each subscriber only generated revenue of about €76 per annum.<o:p> </o:p> And if Perlico, by a feat of corporate magic, had somehow managed to move to a €1m operating profit position last year, Vodafone has still forked out at least 40-times earnings for the business. That looks like an extremely good deal for Perlico, but a leap of faith for Vodafone.<o:p> </o:p> Vodafone has said that it will now be able to offer Perlico’s 62,000 (although it was reported to be 75,000 just six months ago) fixed-line and broadband customers additional services. Say, credit cards?<o:p> </o:p> In May, Perlico said that it was planning a major push into the personal financial services market, intending to offer customers loans and credit cards. Mortgages, income protection and life protection products were also on the agenda, and the carrier was already in advanced negotiations with two Irish financial institutions. <o:p> </o:p> “We don’t intend to be just a broker,” said Perlico founder Iain MacDonald back in May. “We want to develop products with providers and see this as a very good opportunity to deliver better value to consumers.” He even hinted that Perlico would consider buying a financial services outfit.<o:p> </o:p> So are these projects on ice now Vodafone has come on board? Possibly, although Vodafone has said that Perlico will retain its own brand which may give it licence to continue its diversification.<o:p> </o:p> While Perlico had originally slated last September as a “soft launch” date for its suite of finance products, it doesn’t appear to have happened just yet. It’s likely that those pesky takeover negotiations with Vodafone got in the way.<o:p> </o:p> Just how interested will Vodafone be in pursuing these strategies? Difficult to call. They might be perceived as being a distraction from the core business. But if Perlico proceeds with its plans, and they’re successful, could Vodafone consider replicating such an approach in other markets? No, would seem the obvious answer, but maybe Arun Sarin’s mind is swirling with the possibilities.<o:p> </o:p> In the meantime, the winners out of this are Perlico’s shareholders.<o:p> </o:p> A €20m fundraising last year valued the company at just €55m, so Vodafone is already paying a potential 45% premium on that. Paper magnate Michael Smurfit paid €10m to acquire his 18% stake in Perlico. He could conceivably make a generous return on his investment.<o:p> </o:p> Other Perlico investors include Iain MacDonald’s father Malcolm, a former corporate financier at ICC and Bank of Scotland, as well as David Martin, the former finance director of food and agri group IAWS. Serial technology entrepreneur Jim Mountjoy is also quids in.<o:p> </o:p> Will the only loser be Vodafone?<o:p> </o:p> <a href="http://www.rte.ie/business/2007/1113/perlico.html">http://www.rte.ie/business/2007/1113/perlico.html</a><o:p> </o:p> <a href="http://www.siliconrepublic.com/news/news.nv?storyid=single9621">http://www.siliconrepublic.com/news/news.nv?storyid=single9621</a><o:p> </o:p> <a href="http://www.theregister.co.uk/2007/07/31/o2_results/">http://www.theregister.co.uk/2007/07/31/o2_results/</a><o:p> </o:p> <a href="http://www.theregister.co.uk/2007/10/09/vodafone_tele2/">http://www.theregister.co.uk/2007/10/09/vodafone_tele2/</a><o:p> </o:p> <a href="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2000/12/22/cnvoda22.xml">http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2000/12/22/cnvoda22.xml</a><a href="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2000/12/22/cnvoda22.xml">http://www.perlico.com </a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/1238835287011352908/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=1238835287011352908' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/1238835287011352908'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/1238835287011352908'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/cold-call-for-vodafone.html' title='Cold call for Vodafone'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7NflBKNYXLt06FEYJKQRlymoudFEm7WRpoNAZFlteP76mfbW71TKzpB9gR2k3CbEWJ7m6Ozkn2OodTgTSZ_0fAeI_VGaNV6nr9UEWIRPc2r2p6WyqMw_tdel_RGSBKoGT2q7hguOLoFE/s72-c/Vodafone+1.jpg" height="72" width="72"/><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-6490345711261137737</id><published>2007-11-13T00:03:00.000+00:00</published><updated>2007-11-13T00:11:17.561+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Anglo Irish Bank"/><category scheme="http://www.blogger.com/atom/ns#" term="Investment"/><category scheme="http://www.blogger.com/atom/ns#" term="Investors"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="ISTC"/><category scheme="http://www.blogger.com/atom/ns#" term="Manhattan"/><category scheme="http://www.blogger.com/atom/ns#" term="Mortgages"/><category scheme="http://www.blogger.com/atom/ns#" term="New York"/><category scheme="http://www.blogger.com/atom/ns#" term="property"/><category scheme="http://www.blogger.com/atom/ns#" term="Real Estate"/><category scheme="http://www.blogger.com/atom/ns#" term="Tiarnan O’Mahony"/><category scheme="http://www.blogger.com/atom/ns#" term="Wachovia"/><title type='text'>US homeowners await green cavalry</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTCiljJzk4Cb2jOcv4Ri56M403knAWRneelzo96MkIbd4NE0cap9VrTrCWPQbtJGoClUvqoZWJ6od6cwLOvPDfKA-ib3m0x85Nr-XEEvAXfE7FvM0750-cR0pouaL32d7r1x71FBPCuqM/s1600-h/New+York+1.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTCiljJzk4Cb2jOcv4Ri56M403knAWRneelzo96MkIbd4NE0cap9VrTrCWPQbtJGoClUvqoZWJ6od6cwLOvPDfKA-ib3m0x85Nr-XEEvAXfE7FvM0750-cR0pouaL32d7r1x71FBPCuqM/s320/New+York+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5132109687055188898" border="0" /></a>Has it really come to this?<o:p> </o:p> Just where to begin pointing out the flaws in this madness isn’t easy.<o:p> </o:p> With so many <st1:country-region><st1:place>US</st1:place></st1:country-region> homeowners and developers having their backs to the walls, a chink of light is reported. It’s surely one of the most spectacular false dawns ever.<o:p> </o:p> Incredibly, some <st1:country-region><st1:place>US</st1:place></st1:country-region> estate agents are hoping that foreign buyers – including those from <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> – are going to help prop up the housing market and prevent it heading into even deeper freefall.<o:p> </o:p> Someone has forgotten to take their pills.<o:p> </o:p> The debris from the <st1:country-region><st1:place>US</st1:place></st1:country-region> sub-prime implosion has spread not only domestically, but across the globe.<o:p> </o:p> In Canada, which counts the US as its biggest trading partner, a peak in housing prices during the summer has already turned into a rout, with anecdotal evidence from cities such as Edmonton, that homes are now sitting on the market unable to find buyers in what was just months ago a sizzling-hot property cauldron.<o:p> </o:p> <st1:city><st1:place>Manhattan</st1:place></st1:city>, in particular, has enjoyed a cosy relationship with Irish property investors for years.<o:p> </o:p> A euro on steroids and prospects for capital appreciation in the city have provided the catalysts needed to attract old money, new money and the par-venu hoping to gain credibility. Owing an apartment in <st1:place>Majorca</st1:place> just doesn’t hack it any more – <st1:city><st1:place>Manhattan</st1:place></st1:city>’s the place to be, apparently.<o:p> </o:p> And the Irish have taken chunks out of the Big Apple.<o:p> </o:p> The buyers read like a who’s who of Irish society. Among those who have famously splashed out on pads include Derek Quinlan, who two years ago paid an astonishing $26m for a cavernous townhouse on <st1:street><st1:address>East 64th Street</st1:address></st1:street> – the second-most expensive house bought in <st1:state><st1:place>New York</st1:place></st1:state> in 2005, and the second property he owns on the street.<o:p> </o:p> But others have followed suit. Domhnal Slattery of Claret Capital, Ciaran Haughey, son of former Taoiseach Charles Haughey, and his sister Eimear Mulhern have all been buying apartments in <st1:state><st1:place>New York</st1:place></st1:state>. The list doesn’t end there. Jockeys, property developers and other business personalities have been stuffing money into <st1:state><st1:place>New York</st1:place></st1:state>.<o:p> </o:p> Others amassing Stateside portfolios include Galway solicitor Patrick Keane, who last month sourced a $1.37m mortgage from Anglo Irish Bank to buy an apartment at West 48th Street. From Limerick, Patrick Cheeser of Cheeser Auctioneers recently obtain a $2.8m mortgage to buy on East 63rd Street; and James McEvoy, an auctioneer in Newbridge, Kildare, who earlier this year obtained a $1.36m mortgage to buy on 5th Avenue.<o:p> </o:p> In fact, even as the credit crunch bites, Anglo Irish Bank has continued to dole out tens of millions of dollars worth of mortgages to Irish buyers.<o:p> </o:p> But how long will this last? However long, it certainly won’t be enough to support the <st1:country-region><st1:place>US</st1:place></st1:country-region> market in any conceivably appreciable manner.<o:p> </o:p> Last week, however, Associated Press reported that there’s a “rally in the struggling housing market driven by foreign investors”.<o:p> </o:p> “European investment is likely to pick up,” the piece quotes Mark Vitner, chief economist with Wachovia as saying. “Now is the time to come over and take advantage”.<o:p> </o:p> Without doubt, a feeble dollar makes the prices wholly attractive. But the financial woes of late, and the prospect of more to come, must surely be enough to make even the most experienced of investor think twice.<o:p> </o:p> “The theory goes,” adds the Associated Press, “that foreign investors step in and replace first-time home buyers who have been squeezed out of the housing market during the recent downturn. These new investors in turn allow current homeowners to sell and trade up to larger homes.”<o:p> </o:p> Bunkum.<o:p> </o:p> Irish investors aren’t buying the Graysons’ four-bedroom in Charlotte that’s been sitting on the market for the past six months, or any other similar property – they’re buying newly-developed apartments in major urban areas such as New York and Chicago – the result of which has no impact on helping existing home-owners elsewhere in the US to sell their properties.<o:p> </o:p> Irish and other investors simply can’t save the <st1:country-region><st1:place>US</st1:place></st1:country-region> property market. You might as well ask the Japanese to save the whale.<o:p> </o:p> Is Anglo Irish Bank digging a hole for itself? Maybe not. It has strict lending criteria, and its clients can generally afford to hang on to property for the longer-term, even if they happen to take short-term hits.<o:p> </o:p> But even Anglo Irish Bank can’t be expected to save the <st1:country-region><st1:place>US</st1:place></st1:country-region> real estate market.<o:p> </o:p> Even its former executives aren’t finding these easy.<o:p> </o:p> One-time Anglo Irish Bank chief operating officer Tiarnan O’Mahony is the latest to feel the fallout pain.<o:p> </o:p> His International Securities Trading Corporation (ISTC), which he founded two years ago, announced yesterday that it has delayed its results announcement, taken a €70m ($102m) charge, and suspended grey trading of its shares.<o:p> </o:p> ISTC borrows money from mainstream lenders and then uses the funds to lend the same money to borrowers, making its profit from the difference between the interest rates it pays, and the higher rate it charges to its own clients. Among its investors are former Anglo chief executive Sean Fitzpatrick.<o:p> </o:p> ISTC has €210m in SIV capital notes which have either been downgraded or listed for review by Moody’s Investor Services. It has also cancelled a convertible bond issue.<o:p> </o:p> Seems there’s enough problems at home without having to rescue the <st1:country-region><st1:place>US</st1:place></st1:country-region> too.<o:p> </o:p> <a href="http://ap.google.com/article/ALeqM5gs7J81K2jeycsahYDzU3W5Bqr0XgD8SQLVL00">http://ap.google.com/article/ALeqM5gs7J81K2jeycsahYDzU3W5Bqr0XgD8SQLVL00</a> <a href="http://www.bendweekly.com/Real-Estate/10256.html">http://www.bendweekly.com/Real-Estate/10256.html</a><o:p> </o:p> <a href="http://www.nytimes.com/2007/08/19/realestate/19cov.html?_r=1&amp;oref=slogin">http://www.nytimes.com/2007/08/19/realestate/19cov.html?_r=1&amp;oref=slogin</a><o:p> </o:p> <a href="http://www.rte.ie/news/2007/1112/finance.html">http://www.rte.ie/news/2007/1112/finance.html</a><o:p> </o:p> <a href="http://www.istcorporation.com/press.html">http://www.istcorporation.com/press.html</a><o:p> </o:p> <a href="http://www.pensionsboard.ie/index.asp?locID=30&amp;docID=-1">http://www.pensionsboard.ie/index.asp?locID=30&amp;docID=-1</a><o:p> </o:p> <a href="http://www.finfacts.com/irelandbusinessnews/publish/article_1011772.shtml">http://www.finfacts.com/irelandbusinessnews/publish/article_1011772.shtml</a><o:p> </o:p> <a href="http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=THE+MARKET-qqqs=themarket-qqqid=28106-qqqx=1.asp">http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=THE+MARKET-qqqs=themarket-qqqid=28106-qqqx=1.asp</a> <a href="http://www.finance-magazine.com/supplements/stock2006/display_article.php?aid=7015">http://www.finance-magazine.com/supplements/stock2006/display_article.php?aid=7015</a> <a href="http://www.arandomwalk.com/2007/11/07/us-housing-forecast/">http://www.arandomwalk.com/2007/11/07/us-housing-forecast/</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/6490345711261137737/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=6490345711261137737' title='3 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/6490345711261137737'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/6490345711261137737'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/us-homeowners-wait-for-green-cavalry.html' title='US homeowners await green cavalry'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTCiljJzk4Cb2jOcv4Ri56M403knAWRneelzo96MkIbd4NE0cap9VrTrCWPQbtJGoClUvqoZWJ6od6cwLOvPDfKA-ib3m0x85Nr-XEEvAXfE7FvM0750-cR0pouaL32d7r1x71FBPCuqM/s72-c/New+York+1.jpg" height="72" width="72"/><thr:total>3</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-5812473491573784394</id><published>2007-11-12T00:12:00.000+00:00</published><updated>2007-11-12T01:55:51.782+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="AIB"/><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="China"/><category scheme="http://www.blogger.com/atom/ns#" term="Clare"/><category scheme="http://www.blogger.com/atom/ns#" term="Corruption"/><category scheme="http://www.blogger.com/atom/ns#" term="Gambling"/><category scheme="http://www.blogger.com/atom/ns#" term="Hong Kong"/><category scheme="http://www.blogger.com/atom/ns#" term="Ian Coughlan"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Macau"/><category scheme="http://www.blogger.com/atom/ns#" term="Peninsula"/><category scheme="http://www.blogger.com/atom/ns#" term="Sands"/><category scheme="http://www.blogger.com/atom/ns#" term="SAR"/><category scheme="http://www.blogger.com/atom/ns#" term="Stanley Ho"/><category scheme="http://www.blogger.com/atom/ns#" term="Steve Wynn"/><category scheme="http://www.blogger.com/atom/ns#" term="Wynn"/><category scheme="http://www.blogger.com/atom/ns#" term="Wynn Resorts"/><title type='text'>Wynn-win for Coughlan in Macau gamble</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJtBgdynpwkhgIW60RgcxIpDs5ALGikJuerxzy4ykvhH-ySChskwu_vDoNmpi2lxOBlCOV-j6flms1mUHcqVpeqZlA5-TmL3Ps2BiKpxFwW8uErK6Gj6CrCraxpaucHUQv_l3saNZj9HM/s1600-h/Macau+1.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJtBgdynpwkhgIW60RgcxIpDs5ALGikJuerxzy4ykvhH-ySChskwu_vDoNmpi2lxOBlCOV-j6flms1mUHcqVpeqZlA5-TmL3Ps2BiKpxFwW8uErK6Gj6CrCraxpaucHUQv_l3saNZj9HM/s320/Macau+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5131740440126817170" border="0" /></a>Just as the tiny gambling Mecca of Macau is being rocked by a sensational corruption trial, one Clare native is hoping to weave his magic on the former Portuguese colony off the coast of mainland China.<o:p></o:p> After a decade working with the <st1:place><st1:placename>luxury</st1:placename> <st1:placetype>Peninsula</st1:placetype></st1:place> hotel group, Ian Coughlan has taken the 45-minute boat trip from <st1:place>Hong Kong</st1:place> to take on a new challenge at the Wynn Resorts’ operation in the Chinese special administrative region (SAR).<o:p></o:p> And Coughlan could have hit a personal jackpot.<o:p></o:p> While he initially moved to <st1:place>Macau</st1:place> back in January to work as director of hotel operations with Wynn, he has been recently promoted to president of the gleaming, gold-fronted 20-storey resort, which boasts 600 rooms and a 100,000 square feet casino.<o:p></o:p> A tasty remuneration package has been negotiated for 48-year-old Coughlan, who was born and raised in Ireland, but has spent most of his adult life abroad, working in hotels in Switzerland, London, Atlanta, Hawaii and Asia.<o:p></o:p> An SEC filing last week by Wynn Resorts reveals that Coughlan, whose initial contract runs five years, will be paid a base annual salary of $750,000 (€511,000), with the prospect of earning a bonus of a further $750,000 this year alone should targets be met. And that’s not all.<o:p></o:p> Married to Pamela, and with two young children – Kyle and Emmet – Coughlan has also negotiated three return business class flights a year for his family, to either <st1:country-region><st1:place>Singapore</st1:place></st1:country-region> or <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>. Four return business class flights with Cathay Pacific from <st1:place>Hong Kong</st1:place> to <st1:city><st1:place>London</st1:place></st1:city> next March to make it home in time for St Patrick’s Day will cost almost €14,000 (HK$159,412).<o:p></o:p> Meanwhile, Coughlan and his family receive gratis accommodation while in <st1:place>Macau</st1:place> “at a level commensurate with [the] employee’s position”. He’ll also get a “luxury automobile” and will always travel first-class on business. And don't forget the health plan and paid membership to clubs, societies and professional associations.<o:p></o:p> Not a bad deal.<o:p></o:p> But just as Coughlan is settling into his new role, the <st1:place>Macau</st1:place> casino industry has stumbled under an unwelcome spotlight.<o:p></o:p> The Wynn Macau resort – whose Las Vegas-based quoted parent has a market capitalisation of $15bn (€10.2bn) – is one of a number of new casinos jostling for a cut of the island’s massive $7.2bn gambling income. Last year the SAR overtook <st1:city><st1:place>Las Vegas</st1:place></st1:city> as the world’s largest gaming centre.<o:p></o:p> Wynn Resorts, which is headed by Steve Wynn, has earmarked a total of $1.2bn for its <st1:place>Macau</st1:place> hotel, which opened in 2006. A portion of that fund is being used to develop a new extension. Among those that stumped up when debt raised to fund the initial construction was syndicated, was AIB. <o:p></o:p> Wynn is just one of the companies riding a wave of investment in the former colony, which generates almost all its tax income from the gambling sector.<o:p></o:p> The floodgates opened in 2002, when <st1:place>Macau</st1:place> liberalised its gaming market and broke now 85-year-old Stanley Ho’s monopoly. <o:p></o:p> That year there were 11 casinos with 339 gaming tables and 808 slot machines. Now there are 25 casinos, 2,970 gaming tables and 7,349 slot machines. All this on a 28-square-kilometre area with a population of roughly 500,000.<o:p></o:p> And gambling-mad Asians are flocking to it.<o:p></o:p> According to Steve Wynn, the company’s <st1:place>Macau</st1:place> resort reported a staggering $900m in chip sales within 13 days of opening its doors in September last year.<o:p></o:p> In the three months to the end of September 2007, it recorded revenue of $347.6m, and in the nine-month period to the end of September, sales topped $1bn.<o:p></o:p> Adjusted Property EBITDA (earnings before interest, taxes, depreciation, amortisation, pre-opening costs, property charges and other, corporate expenses) at the <st1:place>Macau</st1:place> resort totalled $92.8m in the three months to the end of September 2007 (only slightly less than the Las Vegas casino), and $264.5m in the nine-months to the end of September.<o:p></o:p> Wynn’s emergence in the SAR has also forced <st1:country-region><st1:place>US</st1:place></st1:country-region> competitor Sands to up the ante. Earlier this year it said that its operating costs in <st1:place>Macau</st1:place> had climbed because it had to raise wages there to compete with the Wynn resort.<o:p></o:p> The Sands’ <st1:place>Macau</st1:place> president might well be looking enviously at Coughlan’s lucrative deal.<o:p></o:p> While <st1:place>Macau</st1:place>’s gambling industry has traditionally been the focus of a constant turf war between triad gangs (even Stanley Ho’s underworld connections have been the subject of extensive speculation and investigation), it’s corruption that is now blighting the landscape.<o:p></o:p> Last week the trial commenced of Ao Man-Long, the former secretary for transport and public works in <st1:place>Macau</st1:place>.<o:p></o:p> He’s accused of taking bribes, of money laundering and abuse of power that saw him amass a fortune of more than $100m in just six years – 57-times his family’s income during the period. He’s alleged to have helped developers win tenders for a number of projects in <st1:place>Macau</st1:place>, including the Venetian hotel and casino, owned by Sands.<o:p></o:p> The courtroom drama has rocked <st1:place>Macau</st1:place>, led to protests and even delayed the construction of one major new casino by Australian businessman James Packer – son of Kerry ‘Packer-Whacker’ Packer.<o:p></o:p> The Wynn group is also trying to snap up land to expand its <st1:place>Macau</st1:place> operations. Apart from extending its existing resort, it reported recently that it has submitted an application to the local government to obtain a concession to use an additional 52-acres in <st1:place>Macau</st1:place>’s Cotai district.<o:p></o:p> Coughlan is going to have plenty to keep him occupied. At least he can escape back to <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> in luxury when things get rough.<o:p> </o:p> <a href="http://www.wynnmacau.com/index.jsp">http://www.wynnmacau.com/index.jsp#</a><o:p> </o:p> <a href="http://www.forbes.com/feeds/ap/2007/10/31/ap4286982.html">http://www.forbes.com/feeds/ap/2007/10/31/ap4286982.html</a><o:p> </o:p> <a href="http://www.hotel-online.com/News/PR2004_2nd/June04_WynnMacau.html">http://www.hotel-online.com/News/PR2004_2nd/June04_WynnMacau.html</a><o:p> </o:p> <a href="http://www.olamacauguide.com/wynn-resorts.html">http://www.olamacauguide.com/wynn-resorts.html</a><o:p> </o:p> <a href="http://www.onlinenevada.org/steve_wynn">http://www.onlinenevada.org/steve_wynn</a><o:p> </o:p> <a href="http://www.taipeitimes.com/News/biz/archives/2006/10/22/2003332888">http://www.taipeitimes.com/News/biz/archives/2006/10/22/2003332888</a><o:p> </o:p> <a href="http://www.feer.com/articles1/2007/0705/free/p020.html">http://www.feer.com/articles1/2007/0705/free/p020.html</a><o:p> </o:p> <a href="http://www.forbes.com/markets/2007/11/02/las-vegas-closer-markets-equity-cx-er_ra_1031markets40.html">http://www.forbes.com/markets/2007/11/02/las-vegas-closer-markets-equity-cx-er_ra_1031markets40.html</a> <a href="http://english.peopledaily.com.cn/200506/22/eng20050622_191700.html">http://english.peopledaily.com.cn/200506/22/eng20050622_191700.html</a><o:p> </o:p> <a href="http://www.theaustralian.news.com.au/story/0,25197,22716257-643,00.html">http://www.theaustralian.news.com.au/story/0,25197,22716257-643,00.html</a><o:p> </o:p> <a href="http://www.reuters.com/article/ousiv/idUSHKG4479220071104">http://www.reuters.com/article/ousiv/idUSHKG4479220071104</a><o:p> </o:p> <a href="http://www.lasvegassun.com/sunbin/stories/gaming/2005/may/10/518734415.html">http://www.lasvegassun.com/sunbin/stories/gaming/2005/may/10/518734415.html</a> <a href="https://www.cia.gov/library/publications/the-world-factbook/geos/mc.html">https://www.cia.gov/library/publications/the-world-factbook/geos/mc.html</a><o:p> </o:p> <a href="http://www.ccac.org.mo/en/">http://www.ccac.org.mo/en/</a><o:p> </o:p> <a href="http://macaudailyblog.com/general/macau-corruption-protest-video-clip/">http://macaudailyblog.com/general/macau-corruption-protest-video-clip/</a><o:p> </o:p> <a href="http://en.wikipedia.org/wiki/James_Packer">http://en.wikipedia.org/wiki/James_Packer</a><o:p> </o:p> <a href="http://www.lasvegassands.com/">http://www.lasvegassands.com/</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/5812473491573784394/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=5812473491573784394' title='40 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5812473491573784394'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5812473491573784394'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/wynn-win-for-coughlan-in-macau-gamble_12.html' title='Wynn-win for Coughlan in Macau gamble'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJtBgdynpwkhgIW60RgcxIpDs5ALGikJuerxzy4ykvhH-ySChskwu_vDoNmpi2lxOBlCOV-j6flms1mUHcqVpeqZlA5-TmL3Ps2BiKpxFwW8uErK6Gj6CrCraxpaucHUQv_l3saNZj9HM/s72-c/Macau+1.jpg" height="72" width="72"/><thr:total>40</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-367645736273239653</id><published>2007-11-09T00:41:00.000+00:00</published><updated>2007-11-09T01:51:44.454+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="ACC"/><category scheme="http://www.blogger.com/atom/ns#" term="ACC Bank"/><category scheme="http://www.blogger.com/atom/ns#" term="Anglo Irish Bank"/><category scheme="http://www.blogger.com/atom/ns#" term="Bank of Scotland"/><category scheme="http://www.blogger.com/atom/ns#" term="bonds"/><category scheme="http://www.blogger.com/atom/ns#" term="Chicago"/><category scheme="http://www.blogger.com/atom/ns#" term="Chicago Spire"/><category scheme="http://www.blogger.com/atom/ns#" term="Colm Darling"/><category scheme="http://www.blogger.com/atom/ns#" term="Fergus Murphy"/><category scheme="http://www.blogger.com/atom/ns#" term="Garrett Kelleher"/><category scheme="http://www.blogger.com/atom/ns#" term="ICC Bank"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Rabobank"/><category scheme="http://www.blogger.com/atom/ns#" term="Shelbourne Development"/><category scheme="http://www.blogger.com/atom/ns#" term="Solid World"/><title type='text'>Murphy’s towering ambition</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirlNYcVHAhEHWL60zu9VcENOWg0ry3uMszFoB39rt_-dcw9mOB8uWVDonPq_53ScuQe6VrgNtpR089lCP8t27LdD5pbxnLhmOipqbXUIynWST4cF0Bpm1tNWxNCZRXqWiwYviPO7Bx7GE/s1600-h/Chicago+Spire+1.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirlNYcVHAhEHWL60zu9VcENOWg0ry3uMszFoB39rt_-dcw9mOB8uWVDonPq_53ScuQe6VrgNtpR089lCP8t27LdD5pbxnLhmOipqbXUIynWST4cF0Bpm1tNWxNCZRXqWiwYviPO7Bx7GE/s320/Chicago+Spire+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5130636148200440690" border="0" /></a><o:p></o:p>Does Fergus Murphy know something staff at ACC Bank don’t?<o:p> </o:p> The freshly departed chief executive was only appointed to the position at the Rabobank subsidiary last January, and just a few months later has jumped ship to join Garrett Kelleher’s Shelbourne Development, the company that has already started construction on what will be the world’s tallest residential apartment block, the Chicago Spire.<o:p> </o:p> Murphy has worked with the Dutch institution Rabobank for 13 years, having been managing director of its Irish arm prior to heading up its Asian operations, which are based in <st1:country-region><st1:place>Singapore</st1:place></st1:country-region>. He was then drafted back to <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> to complete the integration of ACC, which Rabobank acquired in 2002 for €165m from the Irish government. Murphy had helped initiate and manage that acquisition.<o:p> </o:p> He replaced Adrian Hegarty, the then interim ACC chief executive, who had taken up the reins after Colm Darling resigned from his post last December.<o:p> </o:p> Coincidently, Darling left soon after ACC had been severely criticised for a controversial scheme where ACC loaned a total of €500m to thousands of customers to buy geared tracker bonds. Investment in the Solid World 5 geared bond carried high interest rates, and initially it performed very badly, leaving many investors wondering why they hadn’t just stuffed the money in a deposit account. ACC didn’t even actually buy shares in the bond on behalf of investors; it bought derivatives that mirrored it.<o:p> </o:p> Since then, however, the bond has performed well, up 41.48% since its launch by last Monday.<o:p> </o:p> Still, some Rabobank insiders have expressed surprise that Murphy has decided to so radically cut short his tenure at ACC, especially since the job of firmly positioning ACC’s refocused strategy within the Rabobank sphere appears to be as yet incomplete.<o:p> </o:p> That’s led to questions over just how well ACC is holding up in a tough Irish banking market.<o:p> </o:p> And despite the headline figures, maybe all’s not well.<o:p> </o:p> In May, ACC reported pre-tax profits for 2006 of €67.3m, on total operating income of €152.8m. Costs, including a number of “one-off” expenses, said the bank, had climbed by 5% during the fiscal year, bringing the cost-income ratio to 62.7%.<o:p> </o:p> In 2005 ACC recorded a pre-tax profit of €32.5m, down 53% on 2004’s figure. But while that was significantly improved during 2006, operating profit actually fell last year compared to 2005, when it was €166.6m.<o:p> </o:p> And there’s a but. A big one.<o:p> </o:p> ACC’s cost-income ratio for 2006 is a significant deterioration on 2005, when the figure was a much better, if still unattractive, 54.6%. That means the company was being run even less efficiently last year compared to 2005 - all prior to Murphy coming home.<o:p> </o:p> Want to know just how bad that cost-income ratio is? Take a look at Anglo Irish Bank, which ACC is attempting to at least partly emulate with a shift towards concentrating on small and medium-sized business customers. Anglo may be a far bigger operation, but shouldn’t it be easier to maintain a tighter cost-income ratio in a smaller operation?<o:p> </o:p> At the end of May 2007, Anglo’s cost-income ratio was a ravishingly low-cut 25%.<o:p> </o:p> As further comparison, ICC Bank, which was also once a State-owned institution just like ACC, had a cost-income ratio of just 35.8% before it was sold to Bank of Scotland in 2001, and it was trending down.<o:p> </o:p> In that light, ACC’s current cost-income ratio appears a truly dismal testimonial to five years of private ownership.<o:p> </o:p> Perhaps Murphy saw a big mountain to climb, or maybe he just wanted to move to fresh pastures.<o:p> </o:p> And no more different could those pastures be than a Chicago building site.<st1:city><st1:place></st1:place></st1:city><o:p> </o:p> As ‘President, International’ of Shelbourne Development, Murphy will oversee the massive $2.4bn Spire project being backed by Anglo Irish Bank and expected to be complete by 2010. He’ll also have responsibility for other <st1:country-region><st1:place>US</st1:place></st1:country-region> projects.<o:p> </o:p> The 2,000 feet-tall (610 metres) Spire will be almost twice as high as the former World Trade Center towers in New York, while it will also dwarf Chicago’s John Hancock skyscraper, which stands at 1,127 feet (344 metres), or 1,500 feet, if its giant antennae are accounted for.<o:p> </o:p> Garrett Kelleher has overcome much scepticism about his project during the past year or so, most notably from the Chicago Tribune. With ground work having already begun, he has at least answered those critics who wondered whether the scheme would ever proceed. Now all he has to do is find buyers for the swanky apartments – all 1,200 of them.<o:p> </o:p> A graduate of <st1:place><st1:placename>Trinity</st1:placename> <st1:placetype>College</st1:placetype></st1:place>, <st1:city><st1:place>Dublin</st1:place></st1:city>, Kelleher has firmly put his bon viveur days behind him. As a student he was, apparently, known for embracing the lifestyle. He is now on the ‘board of regents’, no less, at the Ave Maria university in <st1:state><st1:place>Florida</st1:place></st1:state>. The Catholic university was founded in 2003 with a $250m endowment from Tom Monaghan, the founder of Domino’s Pizza.<o:p> </o:p> A new-age <st1:place><st1:placetype>Tower</st1:placetype> of <st1:placename>Babel</st1:placename></st1:place>, the Spire certainly won’t be. But both Kelleher and Murphy will no doubt be praying hard for success.<o:p> </o:p> <a href="http://www.accbank.ie/press_office/pr_290107.html">http://www.accbank.ie/press_office/pr_290107.html</a><o:p> </o:p> <a href="http://www.accbank.ie/press_office/pr_160507.html">http://www.accbank.ie/press_office/pr_160507.html</a><o:p> </o:p> <a href="http://tribune.televisual.co.uk/2006/12/10/79969.html">http://tribune.televisual.co.uk/2006/12/10/79969.htm</a><o:p> </o:p> <a href="http://www.accbank.ie/files/ipt_solidworld.pdf?1194541492656">http://www.accbank.ie/files/ipt_solidworld.pdf?1194541492656</a><o:p> </o:p> <a href="http://archives.tcm.ie/businesspost/2006/12/10/story19492.asp">http://archives.tcm.ie/businesspost/2006/12/10/story19492.asp</a><o:p> </o:p> <a href="http://www.rte.ie/business/2007/1106/acc.html">http://www.rte.ie/business/2007/1106/acc.html</a><o:p> </o:p> <a href="http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=11949359">http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=11949359</a> <a href="http://www.angloirishbank.ie/downloads/English_Credit_Summary_May_2007.pdf">http://www.angloirishbank.ie/downloads/English_Credit_Summary_May_2007.pdf</a> <a href="http://www.irlgov.ie/debates-00/s30nov/sect2.htm">http://www.irlgov.ie/debates-00/s30nov/sect2.htm</a><o:p> </o:p> <a href="http://www.designbuild-network.com/projects/chicago-spire/">http://www.designbuild-network.com/projects/chicago-spire/</a><o:p> </o:p> <a href="http://en.wikipedia.org/wiki/John_Hancock_Center">http://en.wikipedia.org/wiki/John_Hancock_Center</a><o:p> </o:p> <a href="http://www.chicagotribune.com/">http://www.chicagotribune.com/</a><o:p> </o:p> <a href="http://www.shelbournedevelopment.com/">http://www.shelbournedevelopment.com/</a><o:p> </o:p> <a href="http://www.avemaria.edu/boardofregents2">http://www.avemaria.edu/boardofregents2</a><o:p> </o:p> <a href="http://en.wikipedia.org/wiki/Ave_Maria_University">http://en.wikipedia.org/wiki/Ave_Maria_University</a><o:p> </o:p> <a href="http://en.wikipedia.org/wiki/Tom_Monaghan">http://en.wikipedia.org/wiki/Tom_Monaghan</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/367645736273239653/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=367645736273239653' title='150 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/367645736273239653'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/367645736273239653'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/murphys-towering-ambition.html' title='Murphy’s towering ambition'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirlNYcVHAhEHWL60zu9VcENOWg0ry3uMszFoB39rt_-dcw9mOB8uWVDonPq_53ScuQe6VrgNtpR089lCP8t27LdD5pbxnLhmOipqbXUIynWST4cF0Bpm1tNWxNCZRXqWiwYviPO7Bx7GE/s72-c/Chicago+Spire+1.jpg" height="72" width="72"/><thr:total>150</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-6544221302215410417</id><published>2007-11-08T00:17:00.000+00:00</published><updated>2007-11-08T13:53:47.229+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="AIB"/><category scheme="http://www.blogger.com/atom/ns#" term="Australia"/><category scheme="http://www.blogger.com/atom/ns#" term="CDO"/><category scheme="http://www.blogger.com/atom/ns#" term="Cheyne"/><category scheme="http://www.blogger.com/atom/ns#" term="collaterised"/><category scheme="http://www.blogger.com/atom/ns#" term="collaterized"/><category scheme="http://www.blogger.com/atom/ns#" term="debt"/><category scheme="http://www.blogger.com/atom/ns#" term="debt obligation"/><category scheme="http://www.blogger.com/atom/ns#" term="Deutsche Bank"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Lehman"/><category scheme="http://www.blogger.com/atom/ns#" term="Mahogany"/><category scheme="http://www.blogger.com/atom/ns#" term="Pan European Hotels CBMS"/><category scheme="http://www.blogger.com/atom/ns#" term="Rhinebridge"/><category scheme="http://www.blogger.com/atom/ns#" term="Saphir"/><category scheme="http://www.blogger.com/atom/ns#" term="SIV"/><category scheme="http://www.blogger.com/atom/ns#" term="SIV-lite"/><title type='text'>Credit where it’s due</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCH-1wiLm4EI2nxxx2tVvWIl1WP4SselGD0ZmbaaEwAevM3z-gKiXS5lSsC-GKm0GG5ujIboK8olJko47B2m53hyphenhyphenCdUABXS34zopqVvnADm6ShyVPase95SXKf3aISQtU2TTMaeXgqtSA/s1600-h/Stock+Market+pic+2.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCH-1wiLm4EI2nxxx2tVvWIl1WP4SselGD0ZmbaaEwAevM3z-gKiXS5lSsC-GKm0GG5ujIboK8olJko47B2m53hyphenhyphenCdUABXS34zopqVvnADm6ShyVPase95SXKf3aISQtU2TTMaeXgqtSA/s320/Stock+Market+pic+2.jpg" alt="" id="BLOGGER_PHOTO_ID_5130257279177966770" border="0" /></a><o:p></o:p>The newspapers these days must put the toughest of Wall Street traders off their morning cereal.<o:p></o:p> But even as the news just seems to get worse and worse, some outfits are seemingly sticking up two fingers right back up at the markets.<o:p></o:p> <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> has become renowned for being a soft regulatory touch for the listing of debt instrument issuances, and it shows. There are over 90 firms registered in the country with ‘CDO’ (Collaterised Debt Obligation) in the title. Firms from Lehman Brothers– with its Saphir vehicle, to Deutsche Bank with its upbeat-named Jazz CDO, have settled 3,000 miles from the <st1:country-region><st1:place>US</st1:place></st1:country-region> financial hub, and called <st1:city><st1:place>Dublin</st1:place></st1:city> home.<o:p></o:p> But there have been major structural cracks appearing, the first seen in Dublin-registered SIVs (Structured Investment Vehicles) Cheyne Finance, and subsequently Rhinebridge.<o:p></o:p> A $2bn SIV, Rhinebridge was sponsored by German bank IKB.<o:p></o:p> In mid-October it defaulted on its debts to the owners of Rhinebridge’s commercial paper. A receiver, Deloitte, was appointed to Rhinebridge to try and sort out the mess.<o:p></o:p> “Rhinebridge ran into difficulty due to the recent events in the credit markets resulting in it being unable to fund its short term debt repayments while at the same time the market value of the assets have deteriorated,” said Deloitte a few weeks ago.<o:p></o:p> It was the second time an Ireland-based SIV had got into trouble. During the summer, Cheyne Finance also stopped paying its short-term debt and Deloitte was also appointed receiver. Royal Bank of <st1:country-region><st1:place>Scotland</st1:place></st1:country-region> then secured exclusive talks to refinance the $6.6bn fund, but the period of exclusivity expired last week. A deal is still expected to be concluded, however.<o:p></o:p> But CDOs – an Irish favourite - are even riskier than SIVs, because they’re more expensive to finance. SIVs are open-ended investment structures that can be continually refinanced (even if it isn’t that easy these days), while CDOs are closed-end, with set maturity dates. Merge the two, and you get SIV-lites.<o:p></o:p> Confused? Good, that’s the way for the banks like to have everyone.<o:p></o:p> The Saphir vehicles established here by Lehman have already drawn fire from <st1:country-region><st1:place>Australia</st1:place></st1:country-region>.<o:p></o:p> Sydney-headquartered Grange Securities, which was acquired by Lehman Brothers in January this year, began selling CDOs called Mahogany Notes through a company called Mahogany Capital, to Australian local councils and other investors in 2004, and again in 2006, according to the Sydney Morning Herald. <o:p></o:p> The Mahogany Notes were invested in Saphir Notes, which are in turn products from Lehman Brothers, manufactured by its Dublin-based Saphir Public Finance company.<o:p></o:p> Both the Mahogany issuances are now well underwater and that’s caused some upset.<o:p></o:p> And as if banks were not getting into enough trouble with the residential mortgages in the <st1:country-region><st1:place>US</st1:place></st1:country-region>, there’s the prospect of what might happen with so-called commercial-backed mortgage securities (CBMS), with musings over recent weeks that this could be the next of level of subsidence to hit markets.<o:p></o:p> Just recently though, despite all the turmoil, a new CBMS vehicle was registered in Dublin. Pan European Hotels CBMS, the formation of which was administered through the Channel Island’s office of Allied Irish Banks, is bent on issuing CDOs despite the current turmoil.<o:p></o:p> It could be someone thinking big, or someone thinking small and one swallow, as they say, doesn’t make a summer – the fact they’re thinking about it at all is a bold move.<o:p></o:p> Seems like there may be some life left in the debt markets after all.<o:p> </o:p> <a href="http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2726873.ece">http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2726873.ece</a> <a href="http://www.risk.net/public/showPage.html?page=328506">http://www.risk.net/public/showPage.html?page=328506</a><o:p> </o:p> <a href="http://www.deloitte.com/dtt/press_release/0,1014,sid%253D2833%2526cid%253D176787,00.html">http://www.deloitte.com/dtt/press_release/0,1014,sid%253D2833%2526cid%253D176787,00.html</a> <a href="http://www.ft.com/cms/s/0/6e6e2f26-7ceb-11dc-aee2-0000779fd2ac.html">http://www.ft.com/cms/s/0/6e6e2f26-7ceb-11dc-aee2-0000779fd2ac.html</a><o:p> </o:p> <a href="http://www.arandomwalk.com/2007/08/30/aib-cheyne/">http://www.arandomwalk.com/2007/08/30/aib-cheyne/</a><o:p> </o:p> <a href="http://ftalphaville.ft.com/blog/2007/08/29/6895/the-cheyne-finance-wind-up-letter/">http://ftalphaville.ft.com/blog/2007/08/29/6895/the-cheyne-finance-wind-up-letter/</a> <a href="http://www.iht.com/articles/2007/11/05/business/hedge.php?WT.mc_id=rssbusiness">http://www.iht.com/articles/2007/11/05/business/hedge.php?WT.mc_id=rssbusiness</a> <a href="http://ragingbull.quote.com/mboard/boards.cgi?board=CLB01194&amp;read=114340">http://ragingbull.quote.com/mboard/boards.cgi?board=CLB01194&amp;read=114340</a> <a href="http://www.grangesecurities.com.au/dynamicpages.aspx?cid=1&amp;navid=1">http://www.grangesecurities.com.au/dynamicpages.aspx?cid=1&amp;navid=1</a><o:p> </o:p> <a href="http://www.smh.com.au/news/business/asic-protects-cdo-investors-names/2007/11/04/1194117879435.html">http://www.smh.com.au/news/business/asic-protects-cdo-investors-names/2007/11/04/1194117879435.html</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/6544221302215410417/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=6544221302215410417' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/6544221302215410417'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/6544221302215410417'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/credit-where-its-due.html' title='Credit where it’s due'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCH-1wiLm4EI2nxxx2tVvWIl1WP4SselGD0ZmbaaEwAevM3z-gKiXS5lSsC-GKm0GG5ujIboK8olJko47B2m53hyphenhyphenCdUABXS34zopqVvnADm6ShyVPase95SXKf3aISQtU2TTMaeXgqtSA/s72-c/Stock+Market+pic+2.jpg" height="72" width="72"/><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-4081217591499182169</id><published>2007-11-07T01:35:00.000+00:00</published><updated>2007-11-07T02:28:20.993+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Altria"/><category scheme="http://www.blogger.com/atom/ns#" term="Austria"/><category scheme="http://www.blogger.com/atom/ns#" term="BAT"/><category scheme="http://www.blogger.com/atom/ns#" term="British American Tobacco"/><category scheme="http://www.blogger.com/atom/ns#" term="cigarettes"/><category scheme="http://www.blogger.com/atom/ns#" term="European Commission"/><category scheme="http://www.blogger.com/atom/ns#" term="European Union"/><category scheme="http://www.blogger.com/atom/ns#" term="Gallaher"/><category scheme="http://www.blogger.com/atom/ns#" term="Greece"/><category scheme="http://www.blogger.com/atom/ns#" term="Imperial Tobacco"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Italy"/><category scheme="http://www.blogger.com/atom/ns#" term="Japanese Tobacco"/><category scheme="http://www.blogger.com/atom/ns#" term="pricing"/><category scheme="http://www.blogger.com/atom/ns#" term="tax"/><category scheme="http://www.blogger.com/atom/ns#" term="Tobacco"/><title type='text'>EU tobacco pricing still in firing line</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjolUxv6kBhrgl3dQtWzy1NBndQjSWoA0pD5IEJQjqwyODKYcZw-kDcea3bCO1hnli1_az4oWKTJYC8-RYItNvwPm0_e3lakMCIwr-WPmB-UpZYZgPvJK6qR3q5EGtPOL6mxTXAwifR3uk/s1600-h/Smoking+Image+2.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjolUxv6kBhrgl3dQtWzy1NBndQjSWoA0pD5IEJQjqwyODKYcZw-kDcea3bCO1hnli1_az4oWKTJYC8-RYItNvwPm0_e3lakMCIwr-WPmB-UpZYZgPvJK6qR3q5EGtPOL6mxTXAwifR3uk/s320/Smoking+Image+2.jpg" alt="" id="BLOGGER_PHOTO_ID_5129907397581914722" border="0" /></a><o:p></o:p>Executives at Altria, Imperial Tobacco, and British American Tobacco must be taking long drags thinking over this conundrum.<o:p></o:p> During the summer, mandarins in <st1:city><st1:place>Brussels</st1:place></st1:city> indicated that <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>, <st1:country-region><st1:place>Austria</st1:place></st1:country-region> and <st1:country-region><st1:place>Italy</st1:place></st1:country-region> must amend domestic legislation that establishes a minimum selling price for cigarettes. It said that the price imposition may infringe EU law.<o:p></o:p> On the face of it, the European Commission move seems positive for cigarette manufacturers' stocks, if not for general health. Or so you might think.<o:p></o:p> The Commission gave the three countries until mid-September to eliminate mandatory minimum cigarette prices, or face its wrath – albeit very long, drawn out wrath. In <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>, the minimum selling price per pack of 20 is €1.30, but retail prices are around €7.30 after taxes and excise duty.<o:p></o:p><o:p></o:p>The Comission has threatened to harry the three respective governments through the European Court of Justice if they fail to dispose of the miniumum price regulation. And there’s a precedent.<o:p> </o:p> Back in 2000, the Commission found that the Greek government was in breach of EU rules by also determining the minimum price of a packet of cigarettes. In its ruling, the Commission said that manufacturers, their representatives or authorised agents of cigarettes and importers from non-member countries “shall be free to determine the maximum selling price for each of their products for each <st1:place><st1:placename>Member</st1:placename> <st1:placetype>State</st1:placetype></st1:place> for which the products in question are to be released for consumption”.<o:p> </o:p> Legal wrangling in the case began in 1994, when the Commission fired off a missive to the Greek government, alleging it was in breach of the law by interfering with cigarette pricing. The Greek government, unsurprisingly, took a different view.<o:p> </o:p> It argued that by maintaining a minimum selling price that it was protecting public health. The EU acknowledged that, but said that objective could be “adequately attained by increased taxation [of tobacco products] which would safeguard the principle of free formation of prices”.<o:p> </o:p> The upshot was that the Greek argument was shot down.<o:p> </o:p> Last March, the EC initiated a similar case against <st1:country-region><st1:place>France</st1:place></st1:country-region>.<o:p> </o:p> For the big tobacco firms this is good news, right?<o:p> </o:p> Wrong. It’s instilling fear.<o:p> </o:p> They know that if the Commission is successful in forcing the Irish, Austrian and Italian governments to abandon minimum pricing policies, then the result could be a surge in taxes levied on their products. And that’s bad for business, if not for people’s health.<o:p></o:p> <o:p></o:p>Yesterday in Ireland, the anti-tobacco lobby ASH called on finance minister Brian Cowen to introduce a whopping €2 per pack rise on cigarettes in his budget next month, which would bring the average price close to €10 (US$14.55) per pack of 20 (packs of 10 were outlawed earlier this year to deter young people in particular from smoking).<o:p> </o:p> While the government is feeling a marginal fiscal tightening and additional sources of tax revenue would be welcome to help balance the books, slapping such a price rise on cigarettes is highly unlikely as it would fuel inflation, which has been just about kept under control. As an ‘old reliable’, it’s more than possible that some tax hike on tobacco will be implemented, but no where near as much as €2 per pack.<o:p> </o:p> Altria, which owns <st1:personname>Philip</st1:personname> Morris and produces brands such as Marlboro, <st1:city><st1:place>Chesterfield</st1:place></st1:city> and L&amp;M, has said that if the European Commission is successful in its pursuit of <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>, <st1:country-region><st1:place>France</st1:place></st1:country-region>, <st1:country-region><st1:place>Austria</st1:place></st1:country-region> and <st1:country-region><st1:place>Italy</st1:place></st1:country-region>, that its actions “could adversely impact excise tax levels and/or price gaps in those markets”. In other words, Altria’s sales growth within the EU could be in danger of being stubbed out.<o:p> </o:p> It’s not alone in fearing the worst. Gallaher, acquired earlier this year by Japanese Tobacco in a $15bn deal, said that the imposition of a minimum selling price in <st1:country-region><st1:place>Austria</st1:place></st1:country-region> last year, at €3.25 per pack, had actually helped its more expensive <st1:city><st1:place>Memphis</st1:place></st1:city> brand to stabilise its sales. However, at an interim results presentation in September last year, chief executive Nigel Northridge said that the activity, including lowering the price of its cheaper brands, “had led to a reduction in the Austrian profit pool”.<o:p> </o:p> A smoking ban in <st1:country-region><st1:place>Scotland</st1:place></st1:country-region> hasn’t helped either, with Gallaher’s sales there down by single digit figures, although revenue in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>, where a ban has been in place in pubs and workplaces since 2004, has grown. Gallaher, whose brands include Benson &amp; Hedges and Silk Cut, increased its Irish market share by 0.2% in 2006. It controls about 50% of the cigarette market in the country.<o:p> </o:p> An EU ruling scrapping minimum selling prices could make things an awful lot tougher for the big tobacco firms, forcing them to continue looking further afield to regions such as <st1:place>Africa</st1:place> and <st1:place>Asia</st1:place> for further growth.<o:p> </o:p> The European Commission could be killing them with kindness.<o:p> </o:p> <a href="http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi%21celexplus%21prod%21CELEXnumdoc&amp;numdoc=61998J0216&amp;lg=en">http://eur-ex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&amp;numdoc=61998J0216&amp;lg=en</a> <a href="http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1820&amp;format=HTML&amp;aged=0&amp;language=en&amp;guiLanguage=en">http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1820&amp;format=HTML&amp;aged=0&amp;language=en&amp;guiLanguage=en</a> <a href="http://www.newash.org.uk/ash_na0mryn4.htm">http://www.newash.org.uk/ash_na0mryn4.htm</a><o:p> </o:p> <a href="http://www.eapn.ie/policy/3058">http://www.eapn.ie/policy/3058</a><o:p> </o:p> <a href="http://archives.tcm.ie/businesspost/2007/08/19/story25976.asp">http://archives.tcm.ie/businesspost/2007/08/19/story25976.asp</a><o:p> </o:p> <a href="http://www.iht.com/articles/2007/04/18/news/tobacco.php">http://www.iht.com/articles/2007/04/18/news/tobacco.php</a><o:p> </o:p> <a href="http://news.bbc.co.uk/1/hi/health/3565899.stm">http://news.bbc.co.uk/1/hi/health/3565899.stm</a><o:p> </o:p> <a href="http://www.lse.co.uk/ShareChart.asp?sharechart=GLH&amp;share=gallaher_grp">http://www.lse.co.uk/ShareChart.asp?sharechart=GLH&amp;share=gallaher_grp</a><o:p> </o:p> <a href="http://www.bloomberg.com/apps/cbuilder?ticker1=MO:US">http://www.bloomberg.com/apps/cbuilder?ticker1=MO:US</a><o:p> </o:p> <a href="http://www.marketwatch.com/news/story/imperial-tobaccos-acquisiton-altadis-expected/story.aspx?guid=%7BF03B94BF-38E5-4029-A267-12C97050AD22%7D">http://www.marketwatch.com/news/story/imperial-tobaccos-acquisiton-altadis-expected/story.aspx?guid=%7BF03B94BF-38E5-4029-A267-12C97050AD22%7D</a> <a href="http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=420051&amp;in_page_id=3">http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=420051&amp;in_page_id=3</a> <a href="http://www.gallaher-group.com/">http://www.gallaher-group.com/</a><o:p> </o:p> <a href="http://www.bat.com/">http://www.bat.com/</a><o:p> </o:p> <a href="http://www.imperial-tobacco.com/">http://www.imperial-tobacco.com/</a><o:p> </o:p> <a href="http://www.altria.com/">http://www.altria.com/</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/4081217591499182169/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=4081217591499182169' title='3 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4081217591499182169'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4081217591499182169'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/eu-tobacco-pricing-still-in-firing-line.html' title='EU tobacco pricing still in firing line'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjolUxv6kBhrgl3dQtWzy1NBndQjSWoA0pD5IEJQjqwyODKYcZw-kDcea3bCO1hnli1_az4oWKTJYC8-RYItNvwPm0_e3lakMCIwr-WPmB-UpZYZgPvJK6qR3q5EGtPOL6mxTXAwifR3uk/s72-c/Smoking+Image+2.jpg" height="72" width="72"/><thr:total>3</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-7973037362917336995</id><published>2007-11-06T11:27:00.000+00:00</published><updated>2007-11-06T17:40:26.078+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="acquisition"/><category scheme="http://www.blogger.com/atom/ns#" term="Barry O'Callaghan"/><category scheme="http://www.blogger.com/atom/ns#" term="Credit Suisse"/><category scheme="http://www.blogger.com/atom/ns#" term="EMPG"/><category scheme="http://www.blogger.com/atom/ns#" term="Harcourt"/><category scheme="http://www.blogger.com/atom/ns#" term="Houghton Mifflin"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Reed Elsevier"/><category scheme="http://www.blogger.com/atom/ns#" term="Riverdeep"/><category scheme="http://www.blogger.com/atom/ns#" term="syndication"/><category scheme="http://www.blogger.com/atom/ns#" term="takeover"/><title type='text'>O’Callaghan gets sums right</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYZp7KU5httEPhnSbPKUeteI_9bWJ5QbehyphenhyphenW0HdIOKwGLMT36lDgHBRJ7NijETwl2UDFmdGybL1bMw0cDgjbQQRGdM0mlLh43HwRx5wh5szBgc68MXLvAK4F3kmJVZ-rXJC2U9ru0APgM/s1600-h/Barry+O%27Callaghan.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYZp7KU5httEPhnSbPKUeteI_9bWJ5QbehyphenhyphenW0HdIOKwGLMT36lDgHBRJ7NijETwl2UDFmdGybL1bMw0cDgjbQQRGdM0mlLh43HwRx5wh5szBgc68MXLvAK4F3kmJVZ-rXJC2U9ru0APgM/s320/Barry+O%27Callaghan.jpg" alt="" id="BLOGGER_PHOTO_ID_5129688873940861506" border="0" /></a>Former Credit Suisse banker Barry O’Callaghan certainly knows how to crunch the numbers.<o:p> </o:p> After spending a staggering $9bn on acquisitions within the past year, the founder of once-publicly listed educational firm Riverdeep has been busy bedding down financing – a task that could have been made all the more difficult in the current climate.<o:p> </o:p> Not so, perhaps, for O’Callaghan.<o:p> </o:p> His educational outfit, now called Education Media and Publishing Group (EMPG) and one of the largest educational publishing groups in the world, has been busy in the past week courting institutions to take on syndicated debt.<o:p> </o:p> Credit Suisse, Lehman Brothers and Citigroup are spearheading the syndication of $7.15bn of EMPG’s debt, with one presentation already having been made in <st1:city><st1:place>London</st1:place></st1:city>, another in <st1:city><st1:place>Barcelona</st1:place></st1:city>, and another yesterday in <st1:state><st1:place>New York</st1:place></st1:state>.<o:p> </o:p> The debt pile has been accumulated following Riverdeep’s reverse takeover last year of Houghton Mifflin for roughly $5bn, and the $4bn purchase earlier this year of Harcourt, the <st1:country-region><st1:place>US</st1:place></st1:country-region> arm of Anglo-Dutch publisher Reed-Elsevier. The latter will have an 11.8% stake in EMPG once the deal is formally closed. Reed-Elsevier has already signalled that it may sell the stake.<o:p> </o:p> Among the investors getting in line as part of the overall deal, is Davy Stockbrokers, which is forking out $235m in new equity financing.<o:p> </o:p> The syndication consists of a $4.95bn first-lien term loan, a $1.7bn second-lien term loan, and a $500m revolving facility.<o:p> </o:p> The first-lien term loan is apparently being priced at 375 basis points above Libor (London Inter-Bank Offer Rate). The 12-month rate is currently around 4.637%.<o:p> </o:p> That compares to recent deals, including Chrylser’s $12bn bank loan arranged during the summer. A first-lien amount of $10bn was initially priced at 325 points above Libor, but was subsequently raised to 375.<o:p> </o:p> It must be a hairy time going to the markets to look for financing for big deals, but having pulled off the two biggest coups of his life, it’s unlikely that anything fazes O’Callaghan these days.<o:p> </o:p> <a href="http://www.thebusiness.co.uk/news-and-analysis/313321/credit-markets-poised-to-jump-back-to-life.thtml">http://www.thebusiness.co.uk/news-and-analysis/313321/credit-markets-poised-to-jump-back-to-life.thtml</a> <a href="http://www.reuters.com/article/marketsNews/idUKN2953978220071029?rpc=44">http://www.reuters.com/article/marketsNews/idUKN2953978220071029?rpc=44</a> <a href="http://www.reuters.com/article/businessNews/idUSN1942939320070719">http://uk.reuters.com/article/governmentFilingsNews/idUKN1227507220070112</a><a href="http://www.reuters.com/article/businessNews/idUSN1942939320070719">http://www.reuters.com/article/businessNews/idUSN1942939320070719</a> <a href="http://www.independent.ie/business/irish/reed-elsevier-eyes-sale-of-its-300m-stake-in-riverdeep-1046815.html">http://www.independent.ie/business/irish/reed-elsevier-eyes-sale-of-its-300m-stake-in-riverdeep-1046815.html</a> <a href="http://archives.tcm.ie/businesspost/2007/07/22/story25306.asp">http://archives.tcm.ie/businesspost/2007/07/22/story25306.asp</a><o:p> </o:p> <a href="http://www.hmco.com/company/investors/invest/ir_release_112906.html">http://www.hmco.com/company/investors/invest/ir_release_112906.html</a> <a href="http://www.reed-elsevier.com/index.cfm?Articleid=539">http://www.reed-elsevier.com/index.cfm?Articleid=539</a><o:p> </o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/7973037362917336995/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=7973037362917336995' title='312 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/7973037362917336995'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/7973037362917336995'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/ocallaghan-gets-sums-right.html' title='O’Callaghan gets sums right'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYZp7KU5httEPhnSbPKUeteI_9bWJ5QbehyphenhyphenW0HdIOKwGLMT36lDgHBRJ7NijETwl2UDFmdGybL1bMw0cDgjbQQRGdM0mlLh43HwRx5wh5szBgc68MXLvAK4F3kmJVZ-rXJC2U9ru0APgM/s72-c/Barry+O%27Callaghan.jpg" height="72" width="72"/><thr:total>312</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-4904712230916516772</id><published>2007-11-05T22:02:00.000+00:00</published><updated>2007-11-06T01:05:57.147+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="commercial property"/><category scheme="http://www.blogger.com/atom/ns#" term="Derek Quinlan"/><category scheme="http://www.blogger.com/atom/ns#" term="FTSE 100"/><category scheme="http://www.blogger.com/atom/ns#" term="FTSE UK Commercial Property Index"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="London"/><category scheme="http://www.blogger.com/atom/ns#" term="Michael O'Leary"/><category scheme="http://www.blogger.com/atom/ns#" term="RICS"/><category scheme="http://www.blogger.com/atom/ns#" term="Royal Institute of Chartered Surveyors"/><category scheme="http://www.blogger.com/atom/ns#" term="Sean Mulryan"/><category scheme="http://www.blogger.com/atom/ns#" term="Wealth Options"/><title type='text'>UK property - brave souls required</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_b-Gr6p8XhGu06k5H76YFPEXJAxxJPCVKaaUD7mV9sutTIc9vweLd0QwptsSW1B-D92yaLpJViiKMwv6XMJ5KdG2UGtSiqufI1FC9AjAfogweMeB2wu10XWcjuQp9FagmEbfvMmXJqUw/s1600-h/London+Property+pic.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_b-Gr6p8XhGu06k5H76YFPEXJAxxJPCVKaaUD7mV9sutTIc9vweLd0QwptsSW1B-D92yaLpJViiKMwv6XMJ5KdG2UGtSiqufI1FC9AjAfogweMeB2wu10XWcjuQp9FagmEbfvMmXJqUw/s320/London+Property+pic.jpg" alt="" id="BLOGGER_PHOTO_ID_5129482328963596850" border="0" /></a>It’s been a jittery few weeks. No more so the past two, which has claimed the heads of Merrill Lynch and Citigroup. Irish bank stocks have been tumbling, while sentiment against financials remains seriously gloomy. Property prices are trending down. It’s enough to make you wonder what you should do with that property portfolio you’ve lovingly nurtured.<o:p></o:p> Even in <st1:city><st1:place>London</st1:place></st1:city>, where Irish magnates such as former tax inspector Derek Quinlan, and others including Limerick-based Aidan Brooks and co have spent years acquiring commercial property, it’s a question of holding nerves, and maybe even making a timely exit.<o:p></o:p> But even a price correction is making for opportunity.<o:p></o:p> UK-based Rowan Asset Management has just launched fundraising for a €15m fund for Irish investors that hopes to capitalise on falling prices in the <st1:country-region><st1:place>UK</st1:place></st1:country-region>. With gearing, the fund should have a total of €40m to invest. The Rowan 4 fund is being specifically established for clients of wealth management firm, Wealth Options, based in Kildare.<o:p></o:p> This is, obviously, the fourth Rowan fund to be raised, and so far the track record appears solid. Last year the first fund booked a 77% return on capital when it sold an office block on <st1:street><st1:address>Palace Street</st1:address></st1:street> in <st1:city><st1:place>London</st1:place></st1:city>, while other investments also performed well, with the existing funds having properties in cities such as <st1:city><st1:place>Manchester</st1:place></st1:city> and <st1:city><st1:place>Peterborough</st1:place></st1:city>.<o:p></o:p> Despite the global credit squeeze, Rowan Asset Management maintains that people still see <st1:country-region><st1:place>UK</st1:place></st1:country-region> property as a “safe haven”.<o:p></o:p> The question is, for how long?<o:p></o:p> The FTSE UK Commercial Property Index has risen 115.6% in the five years to the end of the third quarter in 2007, beating growth in the FTSE-100, which was up 106.8% in the same period. And in the three-month period to the end of the third quarter 2007, the FTSE UK Commerical Property Index managed to post a 1.5% rise as world stocks were battered. The FTSE 100 dipped 1% in the same period.So far, so good.<o:p></o:p> But for Rowan and its Irish investors, securing the types of returns that led to the greening of <st1:country-region><st1:place>Britain</st1:place></st1:country-region> within the past few years, may be a lot more difficult.<o:p></o:p> Earlier last month, the Royal Institute of Chartered Surveyors (RICS), said that the events in credit markets “have raised risk premiums across all asset classes” and that “following the rampant growth of the last four years, the returns outlook for <st1:country-region><st1:place>UK</st1:place></st1:country-region> commercial property has weakened”.<o:p></o:p> For the Irish, with so much money stuffed into <st1:country-region><st1:place>UK</st1:place></st1:country-region> bricks and mortar, this isn’t the type of news they want to hear.<o:p></o:p> Even back in June, the RICS was pointing out that the foot was off the accelerator in the <st1:country-region><st1:place>UK</st1:place></st1:country-region> commercial sector. In the first quarter of this year, 1,038 commercial properties were sold at auction in the <st1:country-region><st1:place>UK</st1:place></st1:country-region>, compared with 1,402 in the last quarter of 2006.<o:p></o:p> The most recent report by the RICS notes that the credit crisis will “undoubtedly” put upward pressure on yields and that the adjustment is likely to be “short and sharp in nature”. It added that a “marked repricing” of secondary commercial properties will continue.<o:p></o:p> While the RICS said it expects a soft landing in the commercial property sector, it noted that property shares are currently trading at a discount of around 30% below net asset values, “suggesting that the market is expecting more significant declines in commercial property values than we are anticipating”.<o:p></o:p> Many heavyweight Irish investors such as JP McManus, Sean Mulryan, John Magnier and Michael O’Leary have already generated significant returns from the <st1:country-region><st1:place>UK</st1:place></st1:country-region> commercial market. Among the other buyers are Michael Whelan of Maplewood Developments, Bernard Doyle and David Courtney of Spain Courtney Doyle, and former managing partner of Andersen Consulting, Roddy Ryan.<o:p></o:p> Despite the RICS’ expectation of a soft touchdown, it may take brave souls to sign up for what could now be a much longer term <st1:country-region><st1:place>UK</st1:place></st1:country-region> property play.<o:p> </o:p> <a href="http://www.rics.org/NR/rdonlyres/9044AA6D-C714-49D2-8FB1-D5EB06586726/0/CommercialPropertyandtheCreditCrunchOct2007.pdf">http://www.rics.org/NR/rdonlyres/9044AA6D-C714-49D2-8FB1-D5EB06586726/0/CommercialPropertyandtheCreditCrunchOct2007.pdf</a> <a href="http://www.ftse.com/Indices/FTSE_UK_Commercial_Property_Index_Series/Downloads/FTSE_UK_Commercial_Property_Factsheet.pdf">http://www.ftse.com/Indices/FTSE_UK_Commercial_Property_Index_Series/Downloads/FTSE_UK_Commercial_Property_Factsheet.pdf</a> <a href="http://www.wealthoptions.ie/">http://www.wealthoptions.ie</a><o:p> </o:p> <a href="http://rowanplc.com/">http://rowanplc.com/</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/4904712230916516772/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=4904712230916516772' title='6 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4904712230916516772'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4904712230916516772'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/uk-property-brave-souls-wanted.html' title='UK property - brave souls required'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_b-Gr6p8XhGu06k5H76YFPEXJAxxJPCVKaaUD7mV9sutTIc9vweLd0QwptsSW1B-D92yaLpJViiKMwv6XMJ5KdG2UGtSiqufI1FC9AjAfogweMeB2wu10XWcjuQp9FagmEbfvMmXJqUw/s72-c/London+Property+pic.jpg" height="72" width="72"/><thr:total>6</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-4999147065186616807</id><published>2007-11-03T16:05:00.000+00:00</published><updated>2007-11-05T23:47:04.386+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Aer Lingus"/><category scheme="http://www.blogger.com/atom/ns#" term="airline"/><category scheme="http://www.blogger.com/atom/ns#" term="airlines"/><category scheme="http://www.blogger.com/atom/ns#" term="aviation"/><category scheme="http://www.blogger.com/atom/ns#" term="Dermot Mannion"/><category scheme="http://www.blogger.com/atom/ns#" term="European Commission"/><category scheme="http://www.blogger.com/atom/ns#" term="Ryanair"/><category scheme="http://www.blogger.com/atom/ns#" term="San Francisco"/><category scheme="http://www.blogger.com/atom/ns#" term="Shannon"/><title type='text'>Aer Lingus remains hopeful of divorcing Ryanair</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju7_NtL-phTd1N8q3sNj3IkyhGdnCIv4-DopRT6CnytgJgzbuvQyNW3ThBrO2zIXzgqu6IhN1fnkGHAeif3jSxsxsyW5hX1FsBsyXOKE7QF4LDFPdbvWBwr6BeCk73Bi4VuKNQMOcuWG8/s1600-h/Aer+Lingus+Ryanair+4.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju7_NtL-phTd1N8q3sNj3IkyhGdnCIv4-DopRT6CnytgJgzbuvQyNW3ThBrO2zIXzgqu6IhN1fnkGHAeif3jSxsxsyW5hX1FsBsyXOKE7QF4LDFPdbvWBwr6BeCk73Bi4VuKNQMOcuWG8/s320/Aer+Lingus+Ryanair+4.jpg" alt="" id="BLOGGER_PHOTO_ID_5128647795343147554" border="0" /></a><o:p></o:p>The Aer Lingus flight plan is now firmly focused on the <st1:country-region><st1:place>US</st1:place></st1:country-region>. It has just inaugurated its Dublin-San Francisco route, which will become a daily service at the end of next March.<o:p></o:p> The airline has also resurrected a route to <st1:city><st1:place>Orlando</st1:place></st1:city> (that was scrapped in 2005 due to disagreements with flight crew), and introduced a Dublin-Dulles schedule. All this is likely to be at the expense of the Dublin-Dubai route, which could be canned by early next year.<o:p></o:p> While all this route expansion is underway, Aer Lingus boss Dermot Mannion seems adamant that Ryanair, which now owns almost 30% of Aer Lingus, will still be forced to divest at least part of its stake at some stage in the future.<o:p></o:p> During the summer the European Commission blocked Ryanair’s plan to acquire Aer Lingus, saying that such a move would create a near-monopoly of air services within <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>.<o:p></o:p> Aer Lingus subsequently moved to force Ryanair to sell its stake, but the European Commission said last month that it had no power to force the low-fares carrier to off-load the holding.<o:p></o:p> Aer Lingus is now appealing that decision to the Court of First Instance, and a ruling will probably be made by next year.<o:p></o:p> Speaking to the San Francisco Chronicle this week, Mannion said that “we are hoping that over time, because of the competitive strains between the organisations, they [Ryanair] will have to reduce their shareholding because we don't think it's healthy for one major competitor to have 30%”.<o:p></o:p> And serving as a backdrop to all this is the Aer Lingus-Shannon debate.<o:p></o:p> A sad fact of life it may be, but those campaigning for Aer Lingus to retain its London Heathrow route would be better expending their energy at playing to <st1:place>Shannon</st1:place>’s strengths, rather than fighting what will be, and should be, a losing battle.<o:p></o:p> That Aer Lingus is no longer state-owned seems to have been lost on those arguing for the route to be maintained. A publicly-quoted company, or a private one for that matter, can not afford to continue loss-making services. That’s especially true in the aviation industry, where soaring fuel costs, and in the case of Aer Lingus, high labour costs, mean it has to keep a tight rein on things.<o:p></o:p> Any external geo-political shock could drive the aviation industry into a steep decline, as did the events of 2001. Even without such a catalyst, it’s a notoriously cyclical business. One where in tough times, it might be good to have a rich sugar daddy, even if you don’t like sleeping with them.<o:p> </o:p> <a href="http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/11/03/BUC1T45U6.DTL">http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/11/03/BUC1T45U6.DTL</a><o:p></o:p><o:p></o:p><a href="http://www.independent.ie/business/irish/aer-lingus-confirms-plans-to-challenge-ryanairs-stake-1139520.html">http://www.independent.ie/business/irish/aer-lingus-confirms-plans-to-challenge-ryanairs-stake-1139520.html</a> <a href="http://www.iht.com/articles/2007/06/27/business/ryanair.php">http://www.iht.com/articles/2007/06/27/business/ryanair.php</a><o:p> </o:p> <a href="http://www.rte.ie/news/2006/1005/aerlingus.html">http://www.rte.ie/news/2006/1005/aerlingus.html</a><o:p> </o:p> <a href="http://www.rte.ie/business/2006/1005/ryanair.html">http://www.rte.ie/business/2006/1005/ryanair.html</a><o:p> </o:p> <a href="http://www.rte.ie/news/2005/0511/6news.html">http://www.rte.ie/news/2005/0511/6news.html</a><o:p> </o:p> <a href="http://www.reuters.com/article/innovationNews/idUSL1461792320070514">http://www.reuters.com/article/innovationNews/idUSL1461792320070514</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/4999147065186616807/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=4999147065186616807' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4999147065186616807'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/4999147065186616807'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/aer-lingus-remains-hopeful-of-divorcing.html' title='Aer Lingus remains hopeful of divorcing Ryanair'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEju7_NtL-phTd1N8q3sNj3IkyhGdnCIv4-DopRT6CnytgJgzbuvQyNW3ThBrO2zIXzgqu6IhN1fnkGHAeif3jSxsxsyW5hX1FsBsyXOKE7QF4LDFPdbvWBwr6BeCk73Bi4VuKNQMOcuWG8/s72-c/Aer+Lingus+Ryanair+4.jpg" height="72" width="72"/><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-5155019918529034635</id><published>2007-11-02T21:54:00.000+00:00</published><updated>2007-11-04T18:37:29.777+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Anglo Irish Bank"/><category scheme="http://www.blogger.com/atom/ns#" term="Belfry"/><category scheme="http://www.blogger.com/atom/ns#" term="Bupa"/><category scheme="http://www.blogger.com/atom/ns#" term="hotels Quinn Group"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Moscow"/><category scheme="http://www.blogger.com/atom/ns#" term="property"/><category scheme="http://www.blogger.com/atom/ns#" term="Radisson SAS Slavyanskaya"/><category scheme="http://www.blogger.com/atom/ns#" term="Russia"/><category scheme="http://www.blogger.com/atom/ns#" term="Sean Quinn"/><title type='text'>Sean Quinn’s advance on Moscow</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib8xiLOG4GhXCBJZK6u8dg9kregh3K8JvNE04NfhL0a8Kk2oZAmLdznPCrF3UhUNTyOhaUfgvI3GkW22g2oZsKV69T_mteZzKojHE_X5qjEH476oLZC-oY4BOt8MocYbciNS4BSHFEsuI/s1600-h/Sean+Quinn+1.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib8xiLOG4GhXCBJZK6u8dg9kregh3K8JvNE04NfhL0a8Kk2oZAmLdznPCrF3UhUNTyOhaUfgvI3GkW22g2oZsKV69T_mteZzKojHE_X5qjEH476oLZC-oY4BOt8MocYbciNS4BSHFEsuI/s320/Sean+Quinn+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5128368261691654658" border="0" /></a><o:p></o:p>For two infamous historic leaders, the Russian capital was a step to far. But the Irish have stamped all over <st1:place>Europe</st1:place> in a buying frenzy and <st1:city><st1:place>Moscow</st1:place></st1:city> is no exception.<o:p></o:p> Now Fermanagh-born billionaire Sean Quinn has set his sights on city’s Radisson SAS Slavyanskaya hotel, which is expected to fetch between $240m and $280m (€165m and €193m).<o:p></o:p> If successful, the acquisition would be publicity-shy Quinn’s first hotel acquisition in <st1:city><st1:place>Moscow</st1:place></st1:city> (he also owns an office block in the Kutuzoff quarter), and will add to a string of high-profile hotel properties he already owns in <st1:place>Eastern</st1:place><st1:place> Europe</st1:place>. His group paid €145m in 2004 to buy the Hilton hotel and Ibis Karlin in <st1:city><st1:place>Prague</st1:place></st1:city>. He also has hotel interests in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>, while last April it emerged he was planning a €300m revamp of the prestigious Belfry golf course in <st1:country-region><st1:place>England</st1:place></st1:country-region>, a trophy asset which he acquired in 2005 for €272m. Quinn had previously lost out on a bid to buy the Wentworth golf course.<o:p></o:p> Quinn has extensive interests in a number of areas including energy production, radiator manufacture, cement, glass manufacturing, and insurance. Earlier this year he stepped in to buy Bupa’s Irish health insurance business for €150m.<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnM3iwEa8hqso2bi0FWER0c-J18Kh1NxYZJUSUPjQjwxY4dcawqT1kVPvex26vScQTdYChHf_3UkG7BBnblFDs1NBxSDSD7OpFdROuwLB55YUqIXucA0GqA3ouuae3jyMVb45RWsacyig/s1600-h/Quinn+Group+Logo.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnM3iwEa8hqso2bi0FWER0c-J18Kh1NxYZJUSUPjQjwxY4dcawqT1kVPvex26vScQTdYChHf_3UkG7BBnblFDs1NBxSDSD7OpFdROuwLB55YUqIXucA0GqA3ouuae3jyMVb45RWsacyig/s320/Quinn+Group+Logo.jpg" alt="" id="BLOGGER_PHOTO_ID_5128368837217272338" border="0" /></a> He is also understood to have built up a sizeable stake in Anglo Irish Bank via contracts for difference – as much as 12% - but could have taken a bath on his investment to date. The bank’s shares reached a high of €20.70 during the summer, but had plummeted to €11.13 by the close of business on Friday 2 November. Quinn’s hit may not be so bad however, as he has been stakebuilding since late last year, when the shareprice was hovering around €14.00. Because his stake was accumulated via CFDs, it's also possible that he has even already sold it and netted a profit, without anyone ever knowing.<o:p></o:p> Quinn is also planning to construct two major power stations – one in Louth, the other in <st1:place>Galway</st1:place>, at a cost of more than €1bn. The schemes are currently progressing through the planning process.<o:p></o:p> The Radisson SAS Slavyanskaya is 50% owned by <st1:city><st1:place>Moscow</st1:place></st1:city> city’s property department, with the remainder held by American Radisson.<o:p></o:p> The hotel is reported to have made a profit last year of 469.5m roubles (€13.1m) from sales of 1.67bn roubles (€46m).<o:p></o:p> Sean Quinn’s side of the deal is being handled by Dolmen corporate finance.<o:p> </o:p> <a href="http://www.kommersant.com/p817835/hospitality/">http://www.kommersant.com/p817835/hospitality/</a><o:p> </o:p> <a href="http://en.wikipedia.org/wiki/Sean_Quinn">http://en.wikipedia.org/wiki/Sean_Quinn</a><o:p> </o:p> <a href="http://www.quinn-group.com/whoarewe/companyhistory.htm">http://www.quinn-group.com/whoarewe/companyhistory.htm</a><a href="http://www.forbes.com/lists/2006/10/DHXK.html">http://www.forbes.com/lists/2006/10/DHXK.html</a><a href="http://archives.tcm.ie/businesspost/2007/07/01/story24793.asp">http://archives.tcm.ie/businesspost/2007/07/01/story24793.asp</a><o:p> </o:p> <a href="http://www.galwayfirst.ie/content/view/1021/456/">http://www.galwayfirst.ie/content/view/1021/456/</a><o:p> </o:p> <a href="http://archives.tcm.ie/irishexaminer/2007/05/31/story33990.asp">http://archives.tcm.ie/irishexaminer/2007/05/31/story33990.asp</a> <a href="http://www.cbr.ru/eng/currency_base/daily.asp">http://www.cbr.ru/eng/currency_base/daily.asp</a> <a href="http://www.cbr.ru/eng/currency_base/daily.asp"></a><a href="http://www.angloirishbank.ie/">http://www.angloirishbank.ie/</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/5155019918529034635/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=5155019918529034635' title='2 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5155019918529034635'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5155019918529034635'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/sean-quinns-advance-on-moscow.html' title='Sean Quinn’s advance on Moscow'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib8xiLOG4GhXCBJZK6u8dg9kregh3K8JvNE04NfhL0a8Kk2oZAmLdznPCrF3UhUNTyOhaUfgvI3GkW22g2oZsKV69T_mteZzKojHE_X5qjEH476oLZC-oY4BOt8MocYbciNS4BSHFEsuI/s72-c/Sean+Quinn+1.jpg" height="72" width="72"/><thr:total>2</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-3910122432118934133</id><published>2007-11-02T13:04:00.000+00:00</published><updated>2007-11-04T01:34:33.155+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Andrew Butterell"/><category scheme="http://www.blogger.com/atom/ns#" term="Australia"/><category scheme="http://www.blogger.com/atom/ns#" term="Babcock and Brown"/><category scheme="http://www.blogger.com/atom/ns#" term="Comreg"/><category scheme="http://www.blogger.com/atom/ns#" term="Credit Suisse"/><category scheme="http://www.blogger.com/atom/ns#" term="Eircom"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Meteor"/><category scheme="http://www.blogger.com/atom/ns#" term="Rex Comb"/><category scheme="http://www.blogger.com/atom/ns#" term="takeover"/><category scheme="http://www.blogger.com/atom/ns#" term="telco"/><category scheme="http://www.blogger.com/atom/ns#" term="telecoms"/><category scheme="http://www.blogger.com/atom/ns#" term="Tony O'Reilly"/><category scheme="http://www.blogger.com/atom/ns#" term="Valentia"/><title type='text'>Babcock & Brown stock may soar if Eircom splits</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho3egVUqDxa1H24N9V5sqD8YihZdFIl6mGAU9-ziEdBaBU0VU9lS0YfD5YnEnhJtalCuexRiUmKl2qQa1UDDTt6LpNvoMCWXqLvfrIFy7MRJQPK_Nxxcu5lJUPLQjVq-DdaWgvU5EGbOo/s1600-h/Mobile+phone+pic.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho3egVUqDxa1H24N9V5sqD8YihZdFIl6mGAU9-ziEdBaBU0VU9lS0YfD5YnEnhJtalCuexRiUmKl2qQa1UDDTt6LpNvoMCWXqLvfrIFy7MRJQPK_Nxxcu5lJUPLQjVq-DdaWgvU5EGbOo/s320/Mobile+phone+pic.jpg" alt="" id="BLOGGER_PHOTO_ID_5128230960177136114" border="0" /></a><o:p></o:p>Last month Australian investment firm Babcock &amp; Brown said it wants to split up its Irish telecoms operation Eircom, hiving off the retail and network arms into separate entities.<o:p></o:p> It’s a move that would pave the way for a sale of the retail arm, and one that has caught the eye of other carriers around the world, who perceive it be a useful way of extracting value from existing operations.<o:p></o:p> In the case of Babcock &amp; Brown, the company wants to be in a position to generate a decent return from Eircom’s assets, having fully acquired the company in 2006. It had paid about €250m for a 12.5% stake in 2005. The following year it tabled a successful bid for the entire company, that valued Eircom at over €2.4bn.<o:p></o:p> It was still the days of cheap money, and Babcock &amp; Brown borrowed heavily to pay for the deal – 20% of its offer was funded from equity, 80% through debt. At the time, Eircom had debt totalling €1.8bn – not something to take on likely in such a relatively small operation on an international scale. <o:p></o:p> Those debt levels continued to soar as Babcock &amp; Brown refinanced existing borrowings and took on more. Within weeks of the acquisition, debt levels had risen to over €4bn. That’s a far cry from the position the telco was in prior to 2001, when its debt levels were negligible. When it was acquired by the Valentia consortium that included Independent News &amp; Media’s Tony O’Reilly, debt climbed to €2.5bn – a figure that had fallen marginally to €2.1bn by the time it was sold again.<o:p></o:p> Chopping Eircom to pieces is how Babcock &amp; Brown now obviously envisages making a return. During the summer it emerged that the company had also put its phone transmission masts up for sale, with a price tag in the region of €150m.<o:p></o:p> If Babcock &amp; Brown was to sell Eircom’s retail arm, it could fetch as much as €1bn, while the mobile operator Meteor could be worth €800m.<o:p></o:p> Analysts are beginning to see much merit in the move.<o:p></o:p> This week Credit Suisse analyst Andrew Butterell substantially raised his 12-month price target for Babcock &amp; Brown by more than 50% above its current trading price, to A$7.59. But he thinks the best could be yet to come.<o:p></o:p> Butterell says that if Eircom is successfully split, Babcock &amp; Brown shares could be worth A$11.50 – almost two-and-a-half times their A$4.75 closing price on Friday 2 November.<o:p></o:p> Eircom chief executive Rex Comb thinks the chances of regulator Comreg and the government allowing Babcock &amp; Brown to split the company is “50-50”, but he may be overly conservative in his odds.<o:p></o:p> The government’s Department of Communications, Energy &amp; Natural Resources has said that Eircom is a private company and “how it organises itself on a corporate basis is primarily a matter for the company itself”. However, there may be regulatory issues that could prevent the proposal going through as smoothly as Babcock &amp; Brown would hope for.<o:p></o:p> The question now is, who’ll come out of the woodwork to buy the retail units if Babcock &amp; Brown puts them on the block? The fallout from the credit squeeze continues to hammer the markets. Anything that comes with the baggage of a big debt pile may find itself short of suitors. It will all come down to pricing, but Babcock &amp; Brown will be forced to drive a hard bargain if it’s to get the sort of return it will need to please shareholders.<o:p> </o:p> <a href="http://www.independent.ie/business/irish/eircom-seeks-approval-to-split-company-in-two-1116112.html">http://www.independent.ie/business/irish/eircom-seeks-approval-to-split-company-in-two-1116112.html</a> <a href="http://www.irelandoffline.org/2002/04/02/ibec-calls-for-eircom-split/">http://www.irelandoffline.org/2002/04/02/ibec-calls-for-eircom-split/</a> <o:p></o:p><a href="http://home.eircom.net/content/irelandcom/topstories/10865887?view=Eircomnet">http://home.eircom.net/content/irelandcom/topstories/10865887?view=Eircomnet</a> <a href="http://archives.tcm.ie/businesspost/2006/03/19/story12661.asp">http://archives.tcm.ie/businesspost/2006/03/19/story12661.asp</a> <a href="http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article717032.ece">http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article717032.ece</a> <a href="http://www.smh.com.au/news/Business/Irish-eyes-smile-on-Babcock-amp-Brown/2006/05/23/1148150250589.html">http://www.smh.com.au/news/Business/Irish-eyes-smile-on-Babcock-amp-Brown/2006/05/23/1148150250589.html</a> <a href="http://www.asx.com.au/asx/research/chartsSearchResult.jsp?asxCode=BCM&amp;TimeFrame=D6&amp;compare=index&amp;indices=XJO">http://www.asx.com.au/asx/research/chartsSearchResult.jsp?asxCode=BCM&amp;TimeFrame=D6&amp;compare=index&amp;indices=XJO</a> <a href="http://www.babcockbrown.com/">http://www.babcockbrown.com/</a> <a href="http://www.eircom.ie/cgi-bin/bvsm/bveircom/mainPage.jsp">http://www.eircom.ie/cgi-bin/bvsm/bveircom/mainPage.jsp</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/3910122432118934133/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=3910122432118934133' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/3910122432118934133'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/3910122432118934133'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/babcock-brown-stock-may-soar-if-eircom.html' title='Babcock & Brown stock may soar if Eircom splits'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho3egVUqDxa1H24N9V5sqD8YihZdFIl6mGAU9-ziEdBaBU0VU9lS0YfD5YnEnhJtalCuexRiUmKl2qQa1UDDTt6LpNvoMCWXqLvfrIFy7MRJQPK_Nxxcu5lJUPLQjVq-DdaWgvU5EGbOo/s72-c/Mobile+phone+pic.jpg" height="72" width="72"/><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-2194309746752255968</id><published>2007-11-01T14:15:00.000+00:00</published><updated>2007-11-01T14:56:31.747+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Austria"/><category scheme="http://www.blogger.com/atom/ns#" term="Bernard Somers"/><category scheme="http://www.blogger.com/atom/ns#" term="entrepreneur"/><category scheme="http://www.blogger.com/atom/ns#" term="Etel"/><category scheme="http://www.blogger.com/atom/ns#" term="GTS Energis"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Mediatel"/><category scheme="http://www.blogger.com/atom/ns#" term="Sean Melly"/><category scheme="http://www.blogger.com/atom/ns#" term="Supernova Capital"/><category scheme="http://www.blogger.com/atom/ns#" term="Telekom Austria"/><category scheme="http://www.blogger.com/atom/ns#" term="Vasorum"/><title type='text'>Telekom still seeking buyer for Melly’s Etel</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhttqiOgEhSPHxhQzcd2A9Yfy9oDCwcWvB_yI0NVrqqIW7kssa4pt3eeaDTc1efRR1JqLBYDXFXQKpo_pXc2Z3ddhsDjEsw33jVtDc2FaShj1oaF2W-FcZrEKX2NmxPVk4V81Gx2feJQEw/s1600-h/Sean+Melly+1.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhttqiOgEhSPHxhQzcd2A9Yfy9oDCwcWvB_yI0NVrqqIW7kssa4pt3eeaDTc1efRR1JqLBYDXFXQKpo_pXc2Z3ddhsDjEsw33jVtDc2FaShj1oaF2W-FcZrEKX2NmxPVk4V81Gx2feJQEw/s320/Sean+Melly+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5127876668324889058" border="0" /></a><o:p></o:p>Back in April, just four months after acquiring Irish telco Etel for €90m, Telekom <st1:country-region><st1:place>Austria</st1:place></st1:country-region> was already looking to offload the eastern European network. And it’s still looking for a buyer.<o:p></o:p> Founded by entrepreneur Sean Melly in 1999 (pictured, left, with O'Brien's Sandwich bar founder Brody Sweeney), Etel has about 250,000 fixed network customers in <st1:country-region><st1:place>Austria</st1:place></st1:country-region>, while it also has a small customer base in countries such as the <st1:place><st1:placename>Czech</st1:placename> <st1:placetype>Republic</st1:placetype></st1:place>, <st1:country-region><st1:place>Hungary</st1:place></st1:country-region> and <st1:country-region><st1:place>Slovakia</st1:place></st1:country-region>.<o:p></o:p> Institutional investors, including Dresdner Kleinwort Capital, Intel, Argus and Greenhill, had stuffed at least €80m into Etel before it was sold, and while they were probably not deliriously happy with their return, Melly and other shareholders did reasonably well from the buyout.<o:p></o:p> He received in the region of €10m from the acquisition, while businessman and former Central Bank director Bernard Somers realised a similar amount.<o:p></o:p> But Etel obviously hasn’t lived up to expectations for Telekom <st1:country-region><st1:place>Austria</st1:place></st1:country-region>. Last April, the head of the Austrian firm’s fixed network unit, Rudolf Fischer, said that the company wanted to sell Etel in order to slow the pace of revenue decline from Telekom <st1:country-region><st1:place>Austria</st1:place></st1:country-region>’s fixed-line network. It was speculated at the time that Colt Telecom, Verizon and Tele2UTA would be potential suitors for Etel.<o:p></o:p> Six months later and a sale hasn’t been finalised.Others now in the frame for Etel include GTS Energis, which already operates in <st1:place>Eastern Europe</st1:place>, Mediatel, and Warsaw-headquartered Supernova Capital.<o:p></o:p> It’s all only of passing interest, no doubt, to Melly, who has already gone on to other things. After shifting Etel, he made a multi-million euro investment in Dublin-based medical device firm Vasorum. It could just lead to his next big payday.<o:p> </o:p> <a href="http://findarticles.com/p/articles/mi_m0UKG/is_2000_April_3/ai_61601332">http://findarticles.com/p/articles/mi_m0UKG/is_2000_April_3/ai_61601332</a><o:p> </o:p> <a href="http://archives.tcm.ie/businesspost/2007/06/03/story24124.asp">http://archives.tcm.ie/businesspost/2007/06/03/story24124.asp</a><o:p> </o:p> <a href="http://business.timesonline.co.uk/tol/business/article1292578.ece">http://business.timesonline.co.uk/tol/business/article1292578.ece</a><o:p> </o:p> <a href="http://archives.tcm.ie/businesspost/2004/05/02/story220324404.asp">http://archives.tcm.ie/businesspost/2004/05/02/story220324404.asp</a><o:p> </o:p> <a href="http://archives.tcm.ie/businesspost/2001/04/08/story41196928.asp">http://archives.tcm.ie/businesspost/2001/04/08/story41196928.asp</a><o:p> </o:p> <a href="http://www.rte.ie/business/2001/1018/etel.html">http://www.rte.ie/business/2001/1018/etel.html</a><o:p> </o:p> <a href="http://www.etel.at/">http://www.etel.at/</a><o:p> </o:p> <a href="http://www.gtsce.com/aboutgts/index.php">http://www.gtsce.com/aboutgts/index.php</a><o:p> </o:p> <a href="http://www.mediatel.pl/">http://www.mediatel.pl/</a><o:p> </o:p> <a href="http://www.forbes.pl/2006/12/20/02.html">http://www.forbes.pl/2006/12/20/02.html</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/2194309746752255968/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=2194309746752255968' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/2194309746752255968'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/2194309746752255968'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/11/telekom-still-seeking-buyer-for-mellys.html' title='Telekom still seeking buyer for Melly’s Etel'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhttqiOgEhSPHxhQzcd2A9Yfy9oDCwcWvB_yI0NVrqqIW7kssa4pt3eeaDTc1efRR1JqLBYDXFXQKpo_pXc2Z3ddhsDjEsw33jVtDc2FaShj1oaF2W-FcZrEKX2NmxPVk4V81Gx2feJQEw/s72-c/Sean+Melly+1.jpg" height="72" width="72"/><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-5220708381740387301</id><published>2007-10-31T18:07:00.000+00:00</published><updated>2007-11-09T10:03:44.016+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Bloomberg"/><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="Ed Moriarty"/><category scheme="http://www.blogger.com/atom/ns#" term="Edmund Moriarty"/><category scheme="http://www.blogger.com/atom/ns#" term="Elan"/><category scheme="http://www.blogger.com/atom/ns#" term="Hamilton College"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Kelly Martin"/><category scheme="http://www.blogger.com/atom/ns#" term="Merrill Lynch"/><category scheme="http://www.blogger.com/atom/ns#" term="New York"/><category scheme="http://www.blogger.com/atom/ns#" term="SIV"/><category scheme="http://www.blogger.com/atom/ns#" term="Stan O'Neal"/><category scheme="http://www.blogger.com/atom/ns#" term="Structured Finance"/><category scheme="http://www.blogger.com/atom/ns#" term="Structured Investment Vehicles"/><title type='text'>Irishman to help clear Merrill mess</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdAEaSYyvOWCriAZPg6rjlLz4OmX1rUUhpuCzcxtP7Bf3MIugPYcJcxJJBrO1QmklIraeN4eJ4WrGwdTmsmU9fun-ynDnR8ZQ59Q_R_mwENvz0HiFdmbsARIq-sChB6HlmLS53D7pTZdQ/s1600-h/Stan+O%27Neal+2.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdAEaSYyvOWCriAZPg6rjlLz4OmX1rUUhpuCzcxtP7Bf3MIugPYcJcxJJBrO1QmklIraeN4eJ4WrGwdTmsmU9fun-ynDnR8ZQ59Q_R_mwENvz0HiFdmbsARIq-sChB6HlmLS53D7pTZdQ/s320/Stan+O%27Neal+2.jpg" alt="" id="BLOGGER_PHOTO_ID_5127567130031866274" border="0" /></a>No doubt Stan O’Neal is coming to terms with being ousted from Merrill Lynch this week thanks to the whopping $161.5m worth of benefits and stock options he’ll take away with him. Oh, and the personal assistant for three years.<o:p></o:p> O’Neal (above) is most definitely one of the first major SIV-positive (former) executives – the tag dreamt up by Wall Street wags to describe the most unstable structured investment vehicles that have thrown the credit markets into crisis.<o:p></o:p> The head of the former General Motors boss was offered on a platter to investors after the company posted a massive $2.24bn quarterly loss – its biggest ever. The firm also booked a $7.9bn charge in the previous quarter following the credit fall-out, ($4.5bn related to sub-prime related products) and some analysts expect it could have to take a further $4bn hit in the next quarter.<o:p></o:p> Media-shy, O’Neal had encouraged more risk taking from its trading operations as interest rates sank over the past number of years. It expanded into areas such as private equity and structured products and commodity trading. It seemed to be going so well. Last year Merrill Lynch posted earnings of $7.5bn. Then the bottom fell out of the structured finance market.<o:p></o:p> For some though, there’s a silver lining.<o:p></o:p> Merrill Lynch’s Ed Moriarty has been appointed to the newly-created role of chief risk officer.<o:p></o:p> An Irish citizen, it will now fall on Moriarty’s shoulders to assume responsibility for market risk, and “re-evaluating parts of our risk framework,” according to Merrill Lynch. That’s code for “getting the hell out of Dodge”.<o:p></o:p> “Ed’s promotion reflects the importance of deeper and more comprehensive risk management discipline under a single senior executive,” added Merrill Lynch on the appointment.<o:p></o:p> For Moriarty, the task must appear monumental. Graciously exiting all its structured investments in an orderly fashion isn’t going to be easy. If Moriarty manages to pull it off, he may even attain a Cicero-type status as the man who helped save <st1:city><st1:place>Rome</st1:place></st1:city>, or at least Merrill Lynch. Such accolades will not be easily won though.<o:p></o:p> A graduate of Clinton, New York-based <st1:place><st1:placename>Hamilton</st1:placename> <st1:placetype>College</st1:placetype></st1:place>, Moriarty has been a lifer at Merrill Lynch. Just where his Irish pedigree comes from is unknown, but it could, of course, extend back as far as grandparents.<o:p></o:p> Moriarty gave <st1:state><st1:place>New York</st1:place></st1:state>’s current mayor Michael Bloomberg one of his first big breaks, when the now billionaire turned up at Merrill Lynch’s office touting a new computer system that would offer traders functionality not available elsewhere. A Merrill Lynch executive said the company could do it itself, so Bloomberg offered to put together the system in six months and put Merrill Lynch under no obligation to buy if it wasn’t up to scratch. Moriarty agreed to the deal.The next year will be a busy one for Moriarty as he tries to clear up the mess at Merrill. One suspects he’ll be in line for a tidy bonus if he does. No doubt more than enough to buy a handsome spread in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> from which to plot his retirement. Meanwhile, those being tipped as candidates to replace O'Neal, include Kelly Martin, chief executive of pharmaceutical firm Elan. He left Merrill Lynch in 2001 to take up the Elan position as the company came close to collapse.<o:p></o:p> <a href="http://www.reuters.com/article/inPlayBriefing/idUSIN20071030154144MER20071030">http://www.reuters.com/article/inPlayBriefing/idUSIN20071030154144MER20071030</a><o:p></o:p> <o:p></o:p><a href="http://www.kenauletta.com/1997_03_10_thebloombergthreat.html">http://www.kenauletta.com/1997_03_10_thebloombergthreat.html</a><o:p> </o:p> <a href="http://www.freep.com/apps/pbcs.dll/article?AID=/20071031/BUSINESS07/710310398/1002">http://www.freep.com/apps/pbcs.dll/article?AID=/20071031/BUSINESS07/710310398/1002</a> <a href="http://news.independent.co.uk/business/news/article3112837.ece">http://news.independent.co.uk/business/news/article3112837.ece</a><o:p> </o:p> <a href="http://dealbook.blogs.nytimes.com/2007/10/30/merrill-lynchs-32-million-man/">http://dealbook.blogs.nytimes.com/2007/10/30/merrill-lynchs-32-million-man/</a><o:p> </o:p> <a href="http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2774485.ece">http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2774485.ece</a> <a href="http://www.nytimes.com/2007/10/12/business/12insider.html?ref=business">http://www.nytimes.com/2007/10/12/business/12insider.html?ref=business</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/5220708381740387301/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=5220708381740387301' title='29 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5220708381740387301'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5220708381740387301'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/irishman-to-help-clear-merrill-mess.html' title='Irishman to help clear Merrill mess'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdAEaSYyvOWCriAZPg6rjlLz4OmX1rUUhpuCzcxtP7Bf3MIugPYcJcxJJBrO1QmklIraeN4eJ4WrGwdTmsmU9fun-ynDnR8ZQ59Q_R_mwENvz0HiFdmbsARIq-sChB6HlmLS53D7pTZdQ/s72-c/Stan+O%27Neal+2.jpg" height="72" width="72"/><thr:total>29</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-5961165560332033107</id><published>2007-10-31T14:00:00.000+00:00</published><updated>2007-10-31T14:20:24.445+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Betting"/><category scheme="http://www.blogger.com/atom/ns#" term="Bookies"/><category scheme="http://www.blogger.com/atom/ns#" term="Bookmakers"/><category scheme="http://www.blogger.com/atom/ns#" term="Boyle Sports"/><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="Celtic Bookmakers"/><category scheme="http://www.blogger.com/atom/ns#" term="Fine Gael"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Ivan Yates"/><category scheme="http://www.blogger.com/atom/ns#" term="James Henderson"/><category scheme="http://www.blogger.com/atom/ns#" term="Ladbrokes"/><category scheme="http://www.blogger.com/atom/ns#" term="Paddy Power"/><category scheme="http://www.blogger.com/atom/ns#" term="William Hill"/><title type='text'>Bookies ready for the off</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMfPlRd5D2VuqBQRR9xMBEYytwOhOqfdte7hcvBJU_XU3wMZ5zFvkEpJV_WWixCNTGpXO4qqpyLIhM_bg-pD1aWq_xVPXBj8zbP5suqAsQ4L1ZP58MR8iKCYfSJnrKLdjfpLydPwQkM88/s1600-h/Horse+race+1.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMfPlRd5D2VuqBQRR9xMBEYytwOhOqfdte7hcvBJU_XU3wMZ5zFvkEpJV_WWixCNTGpXO4qqpyLIhM_bg-pD1aWq_xVPXBj8zbP5suqAsQ4L1ZP58MR8iKCYfSJnrKLdjfpLydPwQkM88/s320/Horse+race+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5127500802851914114" border="0" /></a><o:p></o:p>The annual rush to renew betting licences is well underway. Among those leading at the first turn is Deirdre Boyd, wife of former Fine Gael TD and Minister for Agriculture, the amiable Ivan Yates.<o:p></o:p> The Wexford-based couple own Celtic Bookmakers, which became so much a part of Yates’ working life that he decided to quit the hurly burly of politics in 2002 to concentrate on expanding the operation. The dedication has paid off.<o:p></o:p> At the time he stood down from office, Celtic Bookmakers had less than 20 stores and was predicting turnover that year of €25m.<o:p></o:p> Founded in 1987, today it operates over 50 outlets and has also put a toe in the <st1:country-region><st1:place>UK</st1:place></st1:country-region> market. Yates wants to grow turnover to €250m within another two years.<o:p></o:p> In August he paid over €2.5m to buy eight Ubet shops in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>, while last year Yates forked out in the region of €5m to acquire another 10-store operation.<o:p></o:p> But it’s a tough business out there with lots of competition. Yates obviously believes he has to expand rapidly to stay in the running.<o:p></o:p> Two months ago British giant Ladbrokes said it would open an additional 80 outlets in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> (up to 30 in the Republic and 50 in <st1:country-region><st1:place>Northern Ireland</st1:place></st1:country-region>) over the next 18 months, bringing its total tally to almost 300.<o:p></o:p> Yates is also up against Paddy Power, which operates over 200 shops in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> and the <st1:country-region><st1:place>UK</st1:place></st1:country-region>, and Boyle Sports with 115. Last week, the latter reported a 25% increase in sales for the year to the end of June 2007 to more than €624m, with operating profits up 300% to €15.6m.<o:p></o:p> British bookmaker William Hill also has a decent footprint in the Republic, which all leaves you wondering who the casualties are going to be. Smaller, independent players, certainly.<o:p></o:p> Interestingly, among those last week seeking to renew licences for William Hill stores in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>, is James Henderson, of Gateforth, north <st1:place>Yorkshire</st1:place>, who on the face of it would seem to control just about all the William Hill outlets in the Republic, although the understanding was that all William Hill stores are company-owned.<o:p></o:p> Curiously, <st1:city><st1:place>Henderson</st1:place></st1:city> doesn’t show up as a company director in the <st1:country-region><st1:place>United Kingdom</st1:place></st1:country-region>, nor does he in appear as director of any Irish entities. If <st1:city><st1:place>Henderson</st1:place></st1:city> indeed had so many outlets under his belt, it’s hard to imagine some corporate structure hasn’t been set up to administer them.<o:p> </o:p> <a href="http://www.independent.ie/business/irish/ladbrokes-targets-80-new-irish-shops-1055263.html">http://www.independent.ie/business/irish/ladbrokes-targets-80-new-irish-shops-1055263.html</a> <a href="http://www.rte.ie/business/2007/0809/PRESSWATCH.html?rss">http://www.rte.ie/business/2007/0809/PRESSWATCH.html?rss</a><o:p> </o:p> <a href="http://news.bbc.co.uk/2/hi/business/4550429.stm">http://news.bbc.co.uk/2/hi/business/4550429.stm</a><o:p> </o:p> <a href="http://celticbookmakers.com/">http://celticbookmakers.com</a><o:p> </o:p> <a href="http://www.paddypowerplc.com/">http://www.paddypowerplc.com/</a><o:p> </o:p> <a href="http://www.willhill.com/iibs/EN/sportsbook.asp">http://www.willhill.com/iibs/EN/sportsbook.asp</a><o:p> </o:p> <a href="http://www.willhill.com/banners/irishshoplocator.html">http://www.willhill.com/banners/irishshoplocator.html</a><o:p> </o:p> <a href="http://www.boylesports.com/index.asp">http://www.boylesports.com/index.asp</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/5961165560332033107/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=5961165560332033107' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5961165560332033107'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5961165560332033107'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/bookies-ready-for-off.html' title='Bookies ready for the off'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMfPlRd5D2VuqBQRR9xMBEYytwOhOqfdte7hcvBJU_XU3wMZ5zFvkEpJV_WWixCNTGpXO4qqpyLIhM_bg-pD1aWq_xVPXBj8zbP5suqAsQ4L1ZP58MR8iKCYfSJnrKLdjfpLydPwQkM88/s72-c/Horse+race+1.jpg" height="72" width="72"/><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-5721510253135578822</id><published>2007-10-30T18:06:00.000+00:00</published><updated>2007-10-30T18:13:50.123+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Azerbaijan"/><category scheme="http://www.blogger.com/atom/ns#" term="Azeri"/><category scheme="http://www.blogger.com/atom/ns#" term="Bahamas"/><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="Caribbean"/><category scheme="http://www.blogger.com/atom/ns#" term="Czech"/><category scheme="http://www.blogger.com/atom/ns#" term="extradition"/><category scheme="http://www.blogger.com/atom/ns#" term="financier"/><category scheme="http://www.blogger.com/atom/ns#" term="George Mitchell"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Northern Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="passports"/><category scheme="http://www.blogger.com/atom/ns#" term="United States"/><category scheme="http://www.blogger.com/atom/ns#" term="US"/><category scheme="http://www.blogger.com/atom/ns#" term="Viktor Kozeny"/><title type='text'>Pirate of Prague still on Caribbean High Seas</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx9-24DXMJLuZK6iCdl-cn-cCfF-opX-f5neMDgpGToITmw59_45ORUgV3mKfbq8Md0txuNV4nbtYMV5iO4OlqUKuoAG-pmpd7S-trhaGkS0fqDyIEHF5hY0A_zKDosJhuqmLvavdxsWQ/s1600-h/Viktor+Kozeny.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx9-24DXMJLuZK6iCdl-cn-cCfF-opX-f5neMDgpGToITmw59_45ORUgV3mKfbq8Md0txuNV4nbtYMV5iO4OlqUKuoAG-pmpd7S-trhaGkS0fqDyIEHF5hY0A_zKDosJhuqmLvavdxsWQ/s320/Viktor+Kozeny.jpg" alt="" id="BLOGGER_PHOTO_ID_5127193704100315506" border="0" /></a><o:p></o:p>Czech-born financier Viktor Kozeny has escaped extradition to the <st1:country-region><st1:place>United States</st1:place></st1:country-region> following a lengthy legal battle in the <st1:country-region><st1:place>Bahamas</st1:place></st1:country-region>.<o:p></o:p> Nicknamed the ‘Pirate of Prague’ and ‘Viktor O’Kozeny’, the businessman secured Irish citizenship in 1995 under the controversial and now defunct passports for investment scheme. He invested €1.27m in an Irish software firm.<o:p> </o:p> Kozeny has been in the <st1:country-region><st1:place>Bahamas</st1:place></st1:country-region> for over two years, and was arrested there on foot of an extradition warrant from the <st1:country-region><st1:place>United States</st1:place></st1:country-region>. He languished in a tropical prison cell for 19 months before being released on $300,000 bail last May.<o:p> </o:p> Kozeny is accused of stealing $182m from <st1:country-region><st1:place>US</st1:place></st1:country-region> investors including former Senator George Mitchell, who spearheaded the <st1:country-region><st1:place>Northern Ireland</st1:place></st1:country-region> peace process, and between 1997 and 1999 of paying millions of dollars of bribes to government officials in <st1:country-region><st1:place>Azerbaijan</st1:place></st1:country-region> between who were dealing with the privitisation of the country’s state-owned oil company.<o:p> </o:p> He also gave gifts to the Azeri officials, including an 18-carat gold box inlaid with diamonds worth €340,000, claim US prosecutors, who also accuse Kozeny of money laundering.<o:p></o:p> Kozeny has also been accused by the Czech government of being involved in the embezzlement of property worth as much as €570m. Czech authorities are also seeking his extradition to face charges.<o:p> </o:p> He has denied all the allegations and claimed he is an “innocent man” who has become a “negative hero in order to stop his creative activity”.<o:p> </o:p> Last week a court in the <st1:country-region><st1:place>Bahamas</st1:place></st1:country-region> said that Kozeny could not be extradited to the <st1:country-region><st1:place>US</st1:place></st1:country-region> because he is not a Bahamian citizen, while the judge hearing the case also said that it has not been proven that Kozeny bribed any Azeri officials.<o:p> </o:p> US officials are expected to appeal the ruling.<o:p> </o:p> In 2003, after his Czech citizenship had been revoked, Kozeny announced his intention to stand for election in the <st1:place><st1:placename>Czech</st1:placename> <st1:placetype>Republic</st1:placetype></st1:place> as an independent candidate. He aimed to use his Irish citizenship to enable him to do so.<o:p> </o:p> While it has been previously reported that his Irish citizenship is to be revoked, the Department of Foreign Affairs has yet not made any definitive moves to do so.<o:p> </o:p> <a href="http://www.ceskenoviny.cz/news/index_view.php?id=278327">http://www.ceskenoviny.cz/news/index_view.php?id=278327</a> <a href="http://www.jonesbahamas.com/?c=45&amp;a=14585">http://www.jonesbahamas.com/?c=45&amp;a=14585</a> <a href="http://www.timesonline.co.uk/tol/newspapers/sunday_times/ireland/article576519.ece">http://www.timesonline.co.uk/tol/newspapers/sunday_times/ireland/article576519.ece</a> <a href="http://www.belgrafix.com/gtoday/2007news/Oct/Oct20/Too-much-politics.htm">http://www.belgrafix.com/gtoday/2007news/Oct/Oct20/Too-much-politics.htm</a> <a href="http://www.radio.cz/en/article/48045">http://www.radio.cz/en/article/48045</a> <a href="http://www.bahamasb2b.com/news/wmview.php?ArtID=3994">http://www.bahamasb2b.com/news/wmview.php?ArtID=3994</a> <a href="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/04/02/ccluke02.xml&amp;lubos_motl=reference_frame">http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/04/02/ccluke02.xml&amp;lubos_motl=reference_frame</a> <a href="http://www.internationalextraditionblog.com/2005/12/extradition-from-bahamasviktor-kozeny.html">http://www.internationalextraditionblog.com/2005/12/extradition-from-bahamasviktor-kozeny.html</a> <a href="http://www.internationalextraditionblog.com/2005/12/extradition-from-bahamasviktor-kozeny.html">http://www.internationalextraditionblog.com/2005/12/extradition-from-bahamasviktor-kozeny.html</a> <a href="http://en.wikipedia.org/wiki/Viktor_Ko%C5%BEen%C3%BD">http://en.wikipedia.org/wiki/Viktor_Ko%C5%BEen%C3%BD</a><a href="http://en.wikipedia.org/wiki/Viktor_Ko%C5%BEen%C3%BD">http://www.cbw.cz/phprs/2005101007.html </a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/5721510253135578822/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=5721510253135578822' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5721510253135578822'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/5721510253135578822'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/pirate-of-prague-still-on-caribbean.html' title='Pirate of Prague still on Caribbean High Seas'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx9-24DXMJLuZK6iCdl-cn-cCfF-opX-f5neMDgpGToITmw59_45ORUgV3mKfbq8Md0txuNV4nbtYMV5iO4OlqUKuoAG-pmpd7S-trhaGkS0fqDyIEHF5hY0A_zKDosJhuqmLvavdxsWQ/s72-c/Viktor+Kozeny.jpg" height="72" width="72"/><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-6521349345299020858</id><published>2007-10-29T19:37:00.001+00:00</published><updated>2007-10-29T21:37:34.424+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="advertising"/><category scheme="http://www.blogger.com/atom/ns#" term="Cliff Taylor"/><category scheme="http://www.blogger.com/atom/ns#" term="horror"/><category scheme="http://www.blogger.com/atom/ns#" term="movies"/><category scheme="http://www.blogger.com/atom/ns#" term="Resident Evil"/><category scheme="http://www.blogger.com/atom/ns#" term="SBPost"/><category scheme="http://www.blogger.com/atom/ns#" term="Sony"/><category scheme="http://www.blogger.com/atom/ns#" term="Sony Pictures"/><category scheme="http://www.blogger.com/atom/ns#" term="Sunday Business Post"/><category scheme="http://www.blogger.com/atom/ns#" term="Umbrella Corporation"/><title type='text'>Sunday Business Post Monster Mash</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ1bhXd1cVwvFQNC6mfV4KXpc_UhYzCkprJoxWIc9ivt7QtXhyU-DfRCLX1xFUPphQhIYK3hDp5SXDezPUXekL-BJNgNmtF4FpBRd7qADaeGyk6Uh7r1X1cY_iKskFC4K_Uuilm-1Td-Y/s1600-h/resident+evil+2+3.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ1bhXd1cVwvFQNC6mfV4KXpc_UhYzCkprJoxWIc9ivt7QtXhyU-DfRCLX1xFUPphQhIYK3hDp5SXDezPUXekL-BJNgNmtF4FpBRd7qADaeGyk6Uh7r1X1cY_iKskFC4K_Uuilm-1Td-Y/s320/resident+evil+2+3.jpg" alt="" id="BLOGGER_PHOTO_ID_5126845184684114274" border="0" /></a><o:p></o:p>Much to my misfortune, I caught the remaining 15 minutes or so of Resident Evil: Apocalypse on TV3 last Sunday evening.<o:p></o:p> And as I watched, the scene shifted to a stream of urgent staccato television news reports detailing the rise of the zombies. Through some nifty, but unexplained, spin-doctoring on the behalf of the evil Umbrella Corporation (which created the zombies in the first place), the reports are eventually dismissed as hoaxes.<o:p></o:p> But all the while, running in the background of this news sequence, is some ‘We Have Something Important to Say’ incidental music. I knew I recognised it, but couldn’t think from where.<o:p></o:p> And then it hit me: it’s the same music used in the ‘We Have Something Important to Say’ television and radio adverts for The Sunday Business Post, when in fact it may not actually have anything of great import to impart.<o:p></o:p> The movie dates from 2004, but the SBP adverts have been on the go for much longer – too long, probably – with the same music. So, was the music devised initially for the adverts and pinched by Sony Pictures, or is it an off-the-shelf piece of filler available for purchase to anyone?<o:p></o:p> And the above is not what SBP editor Cliff Taylor looks like when he’s been scooped, although it might well be applicable to some others around town. <a href="http://www.sbpost.ie/">http://www.sbpost.ie</a><o:p> </o:p> <a href="http://en.wikipedia.org/wiki/Resident_Evil:_Apocalypse">http://en.wikipedia.org/wiki/Resident_Evil:_Apocalypse</a><o:p> </o:p> <a href="http://www.rottentomatoes.com/m/resident_evil_apocalypse/">http://www.rottentomatoes.com/m/resident_evil_apocalypse/</a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/6521349345299020858/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=6521349345299020858' title='11 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/6521349345299020858'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/6521349345299020858'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/sunday-business-post-monster-mash.html' title='Sunday Business Post Monster Mash'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZ1bhXd1cVwvFQNC6mfV4KXpc_UhYzCkprJoxWIc9ivt7QtXhyU-DfRCLX1xFUPphQhIYK3hDp5SXDezPUXekL-BJNgNmtF4FpBRd7qADaeGyk6Uh7r1X1cY_iKskFC4K_Uuilm-1Td-Y/s72-c/resident+evil+2+3.jpg" height="72" width="72"/><thr:total>11</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-2659727488316256463</id><published>2007-10-29T13:28:00.000+00:00</published><updated>2007-11-01T18:15:36.989+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="AirAsia"/><category scheme="http://www.blogger.com/atom/ns#" term="AirAsiaX"/><category scheme="http://www.blogger.com/atom/ns#" term="aircraft leasing"/><category scheme="http://www.blogger.com/atom/ns#" term="airlines"/><category scheme="http://www.blogger.com/atom/ns#" term="aviation"/><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="Conor McCarthy"/><category scheme="http://www.blogger.com/atom/ns#" term="Dublin"/><category scheme="http://www.blogger.com/atom/ns#" term="GE"/><category scheme="http://www.blogger.com/atom/ns#" term="GECAS"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Orix"/><category scheme="http://www.blogger.com/atom/ns#" term="Ryanair"/><category scheme="http://www.blogger.com/atom/ns#" term="Shannon"/><category scheme="http://www.blogger.com/atom/ns#" term="Tony Ryan"/><title type='text'>Low tax, high fliers</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAgX7n1E1YnzYMHSbCiUNEXAATVl7JzDWVxfqCO3h042ReAQNvDRlaZY_aOUon6l7u-4fnjcd-pIFVIpEmac7FDP2ARh4U27nwNxkqxZVTtxIDGsPGU4QgQ0YZehbraCk10TUtdkCN0Bo/s1600-h/Aircraft+landing.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAgX7n1E1YnzYMHSbCiUNEXAATVl7JzDWVxfqCO3h042ReAQNvDRlaZY_aOUon6l7u-4fnjcd-pIFVIpEmac7FDP2ARh4U27nwNxkqxZVTtxIDGsPGU4QgQ0YZehbraCk10TUtdkCN0Bo/s320/Aircraft+landing.jpg" alt="" id="BLOGGER_PHOTO_ID_5126750892972097874" border="0" /></a>Do a quick search for ‘aircraft leasing’ firms in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> and you’ll find 153 of them.<o:p> </o:p> Mostly international operations based in Dublin and Shannon, the country’s 12.5% corporate tax rate has acted as an enormous set of landing lights, guiding in leasing companies from almost every continent. So much so, that <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> is quickly becoming the de facto world centre for the business.<o:p> </o:p> Among the latest to set up shop is Orix Leasing AAX.<o:p> </o:p> Owned by the Japanese financial services group Orix, the newly-registered company is undoubtedly linked to the company’s decision this month to snap up a 10% share in Malaysia-headquartered AirAsiaX, the long-haul, no-frills off-shoot of AirAsia, which in seven years has become the top Asian low-cost carrier.<o:p> </o:p> Orix forked out $35m for its stake in AirAsiaX, with <st1:country-region><st1:place>Bahrain</st1:place></st1:country-region>’s Perigon Capital paying the same amount, also for 10%. Even Richard Branson’s got in on the AirAsiaX party, paying $7m for a 20% shareholding back in August.<o:p> </o:p> Orix is obviously be going to be playing more than just a passive investor role in the start-up, whose maiden flight, to Australia from Kuala Lumpur, will be made this week. It’s probable that Orix is also going to be supplying aircraft to the new operation as it spreads its wings to the <st1:place>Middle East</st1:place>, and <st1:place>Europe</st1:place>. Even the Dublin Airport Authority has begun courting AirAsiaX, which is being advised by former Ryanair director of operations, Conor McCarthy. He also helped mould AirAsia, while has also provided assistance to Qantas low-fares carrier JetStar (headed by Irishman Alan Joyce), as well as AeroMexico.<o:p> </o:p> At times, it seems as if the Irish are taking over the world of air travel, with former Aer Lingus boss Willie Walsh now heading British Airways, while more recently, in the <st1:country-region><st1:place>US</st1:place></st1:country-region>, former Ryanair executive Charlie Clifton helped to launch no-frills carrier Skybus. It appears the Irishfication of the leasing business is next on the agenda.<o:p> </o:p> The Irish aircraft leasing business has its roots in the recently deceased Ryanair founder, Tony Ryan. He founded Guinness Peat Aviation (GPA), in 1975. By the early 1990s, just prior to the first Gulf War, it was worth over $4bn. But an intended 1992 floatation proved a disaster when key <st1:country-region><st1:place>US</st1:place></st1:country-region> fund managers failed to support it. General Electric stepped in the following year to save GPA. Ryan said at the time that the company had been “raped” by GE.<o:p> </o:p> “What do you expect when you walk around with no clothes on?” countered GE boss Jack Welch.<o:p> </o:p> Despite that debacle, the aircraft leasing business in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> has boomed.<o:p> </o:p> Last year Limerick-headquartered Genesis Lease floated in the <st1:country-region><st1:place>US</st1:place></st1:country-region>, raising $641m. It’s currently valued at $795m. The company is registered in <st1:place>Bermuda</st1:place>, and resident in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> solely to avail of the low corporate tax rate. Other benefits apply too, such as favourable VAT treatment and stamp duty exemptions.<o:p> </o:p> Others located in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> include Babcock &amp; Brown, <st1:place>Macquarie</st1:place>, GECAS, Aercap, Investec’s aircraft leasing arm, and BCI.<o:p> </o:p> In a recent edition of the Seattle Times, one of Boeing’s former leading salesmen, Toby Bright, said that the tax incentives for aircraft leasing firms in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> are “pretty overwhelming”, and this is serving as an incentive for much of the business to set up shop in <st1:city><st1:place>Dublin</st1:place></st1:city>.<o:p> </o:p> "Walk into a pub in <st1:city><st1:place>Dublin</st1:place></st1:city> and you can’t privately talk business,” Bright told the newspaper. “It's full of other leasing guys."<o:p> </o:p> Still, the collegial atmosphere wasn’t enough to lure Bright to the capital. He has been working with San Francisco-based aircraft leasing firm Pegasus, which was acquired earlier this year for $5.2bn by Terra Firma Capital Partners. Terra Firm owns AWAS leasing (which it bought in 2006), based, unsurprisingly, in <st1:city><st1:place>Dublin</st1:place></st1:city>, and will combine Pegasus with the former. That means shifting the <st1:state><st1:place>California</st1:place></st1:state> operation to <st1:city><st1:place>Dublin</st1:place></st1:city>. Bright was invited along for the ride, but declined.<o:p> </o:p> So, just how effective is the Irish tax regime? Look no further than the latest set of <st1:personname>accounts</st1:personname> filed in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> for GE Commercial Aviation Funding.<o:p> </o:p> With assets in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region> of more than $14bn, in the period from mid-November 2005 to the end of 2006, it recorded income of $443.3m and a pre-tax profit of $415.3m. It paid Irish tax at the reduced 10% corporate rate that by now has reverted to the standard 12.5%. That incurred a tax liability of $41.5m during the period. However, it claimed group relief of almost $41.3m. The final tax bill? A mere $242,000.<o:p> </o:p> No wonder leasing firms are jetting in. <o:p> </o:p> <a href="http://archives.tcm.ie/irishexaminer/1998/06/09/bhead.htm">http://archives.tcm.ie/irishexaminer/1998/06/09/bhead.htm</a><o:p> </o:p> <a href="http://www.expertguides.com/default.asp?Page=10&amp;GuideID=162&amp;CountryID=44">http://www.expertguides.com/default.asp?Page=10&amp;GuideID=162&amp;CountryID=44</a> <a href="http://www.reuters.com/article/innovationNews/idUSN1125118220070511">http://www.reuters.com/article/innovationNews/idUSN1125118220070511</a> <a href="http://archives.seattletimes.nwsource.com/cgi-bin/texis.cgi/web/vortex/display?slug=sundaybuzz28&amp;date=20071028&amp;query=Toby+Bright">http://archives.seattletimes.nwsource.com/cgi-bin/texis.cgi/web/vortex/display?slug=sundaybuzz28&amp;date=20071028&amp;query=Toby+Bright</a> <a href="http://www.awas.com/contact/corporate_locations.asp">http://www.awas.com/contact/corporate_locations.asp</a> <a href="http://www.genesislease.com/corporate_management.cfm">http://www.genesislease.com/corporate_management.cfm</a> <a href="http://www.gecas.com/">http://www.gecas.com/</a><a href="http://www.gecas.com/">http://www.rte.ie/news/2007/1003/ryant.html </a></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/2659727488316256463/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=2659727488316256463' title='4 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/2659727488316256463'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/2659727488316256463'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/low-tax-high-fliers.html' title='Low tax, high fliers'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAgX7n1E1YnzYMHSbCiUNEXAATVl7JzDWVxfqCO3h042ReAQNvDRlaZY_aOUon6l7u-4fnjcd-pIFVIpEmac7FDP2ARh4U27nwNxkqxZVTtxIDGsPGU4QgQ0YZehbraCk10TUtdkCN0Bo/s72-c/Aircraft+landing.jpg" height="72" width="72"/><thr:total>4</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-426415270725321079</id><published>2007-10-27T20:42:00.000+01:00</published><updated>2007-11-01T23:44:07.482+00:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="banking"/><category scheme="http://www.blogger.com/atom/ns#" term="billionaire"/><category scheme="http://www.blogger.com/atom/ns#" term="Dermot Desmond"/><category scheme="http://www.blogger.com/atom/ns#" term="Estonia"/><category scheme="http://www.blogger.com/atom/ns#" term="IIU"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Lat"/><category scheme="http://www.blogger.com/atom/ns#" term="Latvia"/><category scheme="http://www.blogger.com/atom/ns#" term="Lithuania"/><category scheme="http://www.blogger.com/atom/ns#" term="Rietumu"/><category scheme="http://www.blogger.com/atom/ns#" term="Riga"/><title type='text'>Kaiser chief still banking on Latvia?</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeFyg4jmvDrc7Z_aFiQ6nQzgDd83CMRQYF2WIavNLsYBmqvu8u5Sk1M8HiMGrUhMGs_p_EpGYfrHkFKMIvJOkcPKxSkQ4IysW5aHrCxEu-PEX-kLtYUo83pUbIYMi4B5Ah-Pmn3befmg8/s1600-h/Dermot+Desmond.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeFyg4jmvDrc7Z_aFiQ6nQzgDd83CMRQYF2WIavNLsYBmqvu8u5Sk1M8HiMGrUhMGs_p_EpGYfrHkFKMIvJOkcPKxSkQ4IysW5aHrCxEu-PEX-kLtYUo83pUbIYMi4B5Ah-Pmn3befmg8/s320/Dermot+Desmond.jpg" alt="" id="BLOGGER_PHOTO_ID_5126105857603715378" border="0" /></a><o:p></o:p>Spare a thought, if you can bear it, for billionaire financier Dermot Desmond.<o:p> </o:p> Nicknamed the ‘Kaiser’, Desmond paid an estimated €100m for a 33.1% stake in <st1:country-region><st1:place>Latvia</st1:place></st1:country-region>’s fourth-largest bank by assets, Rietumu Bank, back in 2005.<o:p> </o:p> Ranked 746 on Forbes’ list of the world’s richest people, Desmond rarely puts a foot wrong and has his fingers in more pies than Dandy comic's Desperate Dan. But one wonders if this time his Latvian investment will play out as intended.<o:p> </o:p> <st1:country-region><st1:place>Latvia</st1:place></st1:country-region>, <st1:country-region><st1:place>Estonia</st1:place></st1:country-region> and <st1:country-region><st1:place>Lithuania</st1:place></st1:country-region> all joined the European Union in 2004, and the good times were set to keep on rolling. <st1:country-region><st1:place>Latvia</st1:place></st1:country-region>’s GDP growth has powered ahead, early Celtic Tiger style, for the past decade, with a mere blip in 1999. Last year, it was close to 12%.<o:p> </o:p> So at first glance, everything looks tickety-boo. Membership of the European Union will pump money into the Baltic economies, while so many of their citizens have left to find work elsewhere in Europe (14,000 Latvians in Ireland alone, according to the CSO), that the unemployment rate has dropped to 6.5%, compared with 8.6% in 2003, and 8.8% in 2004.<o:p> </o:p> But something’s not quite right.<o:p> </o:p> <st1:country-region><st1:place>Latvia</st1:place></st1:country-region>’s inflation and current-account deficit are soaring, and its overheating economy is causing concern that a meltdown would trigger a domino effect amongst its closest fledgling European Union members.<o:p> </o:p> By September this year, <st1:country-region><st1:place>Latvia</st1:place></st1:country-region>’s inflation rate was a horrific11.4%, while banks have continued to open the vaults to borrowers.<o:p> </o:p> The capital, <st1:city><st1:place>Riga</st1:place></st1:city>, is in the midst of a property price boom, although recent stamp duty changes have sought to calm it. According to figures from global real estate group Frank Knight, house prices in the city soared 61.2% in the 12 months to June 2007, compared to an average worldwide rise of just 9.6%. <st1:city><st1:place>Riga</st1:place></st1:city>’s been hot-to-trot for Irish investors too, keen to splurge on anything anywhere that has foundations.<o:p> </o:p> And no more than elsewhere, there’s a concern that if hard-pressed and stretched borrowers begin to default on their loans, Latvian banks (which are mostly foreign-owned) could suffer big headaches, leaving shareholders, including, Desmond, reaching for the Panadol.<o:p> </o:p> <st1:country-region><st1:place>Latvia</st1:place></st1:country-region>’s currency, the lat, is pegged to the euro, but there’s a feeling abroad that devaluation may be the way forward.<o:p> </o:p> That currency peg, notes Edward Lucas, writing last week in The Economist, means that <st1:country-region><st1:place>Latvia</st1:place></st1:country-region> can’t raise interest rates to dampen demand.<o:p> </o:p> It’s not all doom and gloom though. Lucas points out that the Latvian central bank has enough reserves to redeem every lat in circulation, while the country has “little foreign debt and a strong credit rating”.<o:p> </o:p> How uneasy might Desmond be over his Latvian investment now? Perhaps not in the slightest.<o:p> </o:p> Rietumu is headed by Tipperaryman Michael Bourke, who once worked for the Irish central bank, and he has steered a steady path for the Baltic institution, which is primarily aimed private banking facilities and financing for SMEs. All this has a whiff of a nascent Anglo Irish Bank. Because it's not doling out mortgages to the masses, Rietumu would be partly sheltered from any collapse or stagnation in the local housing market. But any fiscal policy that would aim to tighten lending could have an adverse impact. Just how much though, is conjecture.<o:p> </o:p> Last week Rietumu announced a net profit of €38m for the first nine months of the year, while assets rose to €1.4bn. Total 2006 profit was €41.5m, a rise of 15% on 2005. It’s likely that the full-year 2007 figure will come in ahead of last year, but by very low double-digit growth.<o:p> </o:p> For Desmond, Rietumu is undoubtedly a long-term play. Last year he sold <st1:place><st1:placename>London</st1:placename> <st1:placetype>City</st1:placetype> <st1:placetype>Airport</st1:placetype></st1:place> for €1.1bn, having bought it a decade earlier for just €35m.<o:p> </o:p> Rietumu is unlikely to post such an eye-popping return in 10-years’ time, but Desmond will most probably have found some real eastern promise, even if in the short-term things look a tad precarious.<o:p> </o:p> <a href="http://edwardlucas.blogspot.com/2007/10/latvia-devaluation.html">http://edwardlucas.blogspot.com/2007/10/latvia-devaluation.html</a><o:p> </o:p> <a href="http://www.rte.ie/business/2005/0829/desmond.html">http://www.rte.ie/business/2005/0829/desmond.html</a><o:p> </o:p> <a href="http://www.rietumu.com/">http://www.rietumu.com/</a><o:p> </o:p> <a href="http://www.iiu.ie/page1.htm">http://www.iiu.ie/page1.htm</a><o:p> </o:p> <a href="http://www.forbes.com/lists/2006/10/JLN3.html">http://www.forbes.com/lists/2006/10/JLN3.html</a><o:p> </o:p> <a href="http://www.knightfrank.com/ResearchReportDirPhase2/11177.pdf">http://www.knightfrank.com/ResearchReportDirPhase2/11177.pdf</a><o:p></o:p> <o:p></o:p><a href="http://en.wikipedia.org/wiki/Economy_of_Latvia">http://en.wikipedia.org/wiki/Economy_of_Latvia</a><o:p> </o:p> <a href="https://www.cia.gov/library/publications/the-world-factbook/geos/lg.html">https://www.cia.gov/library/publications/the-world-factbook/geos/lg.html</a><o:p> </o:p> <a href="http://www.thisislondon.co.uk/news/article-9440349-details/The+luck+of+the+Irish/article.do">http://www.thisislondon.co.uk/news/article-9440349-details/The+luck+of+the+Irish/article.do</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/426415270725321079/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=426415270725321079' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/426415270725321079'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/426415270725321079'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/kaiser-chief-still-banking-on-latvia.html' title='Kaiser chief still banking on Latvia?'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeFyg4jmvDrc7Z_aFiQ6nQzgDd83CMRQYF2WIavNLsYBmqvu8u5Sk1M8HiMGrUhMGs_p_EpGYfrHkFKMIvJOkcPKxSkQ4IysW5aHrCxEu-PEX-kLtYUo83pUbIYMi4B5Ah-Pmn3befmg8/s72-c/Dermot+Desmond.jpg" height="72" width="72"/><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-373888845199327866</id><published>2007-10-26T22:12:00.000+01:00</published><updated>2007-10-27T17:33:52.494+01:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="Caribbean"/><category scheme="http://www.blogger.com/atom/ns#" term="Denis O'Brien"/><category scheme="http://www.blogger.com/atom/ns#" term="Digicel"/><category scheme="http://www.blogger.com/atom/ns#" term="Esat"/><category scheme="http://www.blogger.com/atom/ns#" term="flotation"/><category scheme="http://www.blogger.com/atom/ns#" term="Guyana"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Jamaica"/><category scheme="http://www.blogger.com/atom/ns#" term="Kingston"/><category scheme="http://www.blogger.com/atom/ns#" term="Malta"/><category scheme="http://www.blogger.com/atom/ns#" term="Michael Lowry"/><category scheme="http://www.blogger.com/atom/ns#" term="mobile"/><category scheme="http://www.blogger.com/atom/ns#" term="PJ Mara"/><category scheme="http://www.blogger.com/atom/ns#" term="Portugal"/><category scheme="http://www.blogger.com/atom/ns#" term="telecoms"/><title type='text'>Yo, ere me now!</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmNkpJnefXfjbTEbP-vQnNJnWcoROOM0M0O4IpK8GDkSXSVDiYRpOaXfIFB4eOXGc1PRNqPnDY2dkhMuA2EwT5hPhxw3esyVwpi05OD17cQUA9MieSP52onASGN9XBprwgOX_gM4p-h9s/s1600-h/Denis+O%27Brien.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmNkpJnefXfjbTEbP-vQnNJnWcoROOM0M0O4IpK8GDkSXSVDiYRpOaXfIFB4eOXGc1PRNqPnDY2dkhMuA2EwT5hPhxw3esyVwpi05OD17cQUA9MieSP52onASGN9XBprwgOX_gM4p-h9s/s320/Denis+O%27Brien.jpg" alt="" id="BLOGGER_PHOTO_ID_5125757935187968290" border="0" /></a>Esat founder Denis O’Brien continues his march through the <st1:place>Caribbean</st1:place>, this time rattling the cages of <st1:country-region><st1:place>Guyana</st1:place></st1:country-region> incumbent CG&amp;T.<o:p> </o:p> O’Brien’s Digicel mobile operator, whose footprint now extends across the <st1:place>Caribbean</st1:place> from its Jamaican base, with over 5.7m subscribers, has claimed it will become <st1:country-region><st1:place>Guyana</st1:place></st1:country-region>’s leading mobile telecoms provider within six months. O’Brien said that Digicel already has almost a 50% share of the market in the South American country, which is bordered by <st1:country-region><st1:place>Venezuela</st1:place></st1:country-region>, <st1:country-region><st1:place>Suriname</st1:place></st1:country-region> (where Digicel also operates) and <st1:country-region><st1:place>Brazil</st1:place></st1:country-region>, and that it is poised to become the dominant player.<o:p> </o:p> O’Brien has criticised CG&amp;T, which has a monopoly on international calls in the country, saying customers are being “ripped off” by the prices they’re paying.<o:p> </o:p> CG&amp;T’s chief executive Joe Singh has dismissed O’Brien’s comments, saying that the Irish entrepreneur is "blissfully unaware that GT&amp;T has consistently articulated its preparedness to work with [the] government to realise sector liberalisation".<o:p> </o:p> The criticism is unlikely to deflect O’Brien, who in just seven years has swept across the tropics like a hurricane, battering all in front of him and continually harrying Digicel's competitors.While the awarding of a GSM licence to O’Brien’s Esat Digifone consortium in 1995 by Minister for Transport, Energy &amp; Communications, Michael Lowry, remains a controversial and contentious issue, Digicel has been hard, but rapid graft all the way.<o:p> </o:p> It's an empire created from inauspicious beginnings.When Irish middle managers first arrived in <st1:place><st1:city>Kingston</st1:city>, <st1:country-region>Jamaica</st1:country-region></st1:place>, in 2000 to establish the business, they were afraid to go outside their hotel during their free time due to the level of violence in the capital.<o:p> </o:p> Despite its relatively small population of 2.7m, <st1:country-region><st1:place>Jamaica</st1:place></st1:country-region> is a world murder capital. In 2001 there were over 1,300, mostly gang-related murders. And you thought it was bad in <st1:country-region><st1:place>Ireland</st1:place></st1:country-region>.<o:p> </o:p> Those Digicel managers had a tough time of it. One was mugged at knifepoint on the island days after arriving, while another group of Irish staff returned to where they were staying to find they had just missed seeing their landlord being shot dead. <st1:city><st1:place>Miami</st1:place></st1:city> soon became the destination of choice for Irish lobsters keen to avoid becoming nasty Jamaican statistics. The Irish staff initially found it difficult to deal with their Jamaican counterparts too. "We’d ask: 'Can you do it?'" remembered one Irish Digicel executive. “They’d say: 'No problem, I can do it.'”<o:p></o:p> <o:p></o:p>“Then they do something which isn't right or more likely, they just do nothing because they are not sure what to do."<o:p></o:p> But obviously the lines of communication eventually improved.<o:p></o:p><o:p></o:p> While a flotation of Digicel had looked on the cards, O’Brien instead raised money this year by selling $1.4 billion worth of bonds, buying out minority shareholders and in the process netting himself a cool $800m. He now has full control of the group. Others to benefit included former Fianna Fáil press secretary and election spin meister, PJ Mara.<o:p> </o:p> Digicel has also extended its reach into the Pacific, while it has previously eyed the <st1:country-region><st1:place>US</st1:place></st1:country-region> market and O'Brien has also had tilts at licences in Lebanon and Saudi Arabia. And the rampage isn’t finished yet.<o:p> </o:p> Digicel has just launched in <st1:country-region><st1:place>El Salvador</st1:place></st1:country-region>, and O’Brien believes there is further markets to be exploited in the <st1:place>Caribbean</st1:place>, such as the <st1:country-region><st1:place>Bahamas</st1:place></st1:country-region>, and the <st1:place>British Virgin Islands</st1:place>. O’Brien, meanwhile, has moved his residency status from <st1:country-region><st1:place>Portugal</st1:place></st1:country-region> to <st1:country-region><st1:place>Malta</st1:place></st1:country-region> – boring, but tax efficient, no doubt.Can you ere me now?! <o:p></o:p><a href="http://www.digicelgroup.com/group/">http://www.digicelgroup.com/group/</a><o:p></o:p> <o:p></o:p><a href="http://www.stabroeknews.com/index.pl/article_business?id=56531309">http://www.stabroeknews.com/index.pl/article_business?id=56531309</a><o:p> </o:p> <a href="http://www.cellular-news.com/story/26892.php">http://www.cellular-news.com/story/26892.php</a><o:p> </o:p> <a href="http://archives.tcm.ie/businesspost/2007/02/18/story21110.asp">http://archives.tcm.ie/businesspost/2007/02/18/story21110.asp</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/373888845199327866/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=373888845199327866' title='3 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/373888845199327866'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/373888845199327866'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/yo-ere-me-now.html' title='Yo, ere me now!'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmNkpJnefXfjbTEbP-vQnNJnWcoROOM0M0O4IpK8GDkSXSVDiYRpOaXfIFB4eOXGc1PRNqPnDY2dkhMuA2EwT5hPhxw3esyVwpi05OD17cQUA9MieSP52onASGN9XBprwgOX_gM4p-h9s/s72-c/Denis+O%27Brien.jpg" height="72" width="72"/><thr:total>3</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-8002217802792974051</id><published>2007-10-24T19:17:00.000+01:00</published><updated>2007-10-27T17:35:24.974+01:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Bono"/><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="Clarence"/><category scheme="http://www.blogger.com/atom/ns#" term="Dublin"/><category scheme="http://www.blogger.com/atom/ns#" term="Edge"/><category scheme="http://www.blogger.com/atom/ns#" term="Fianna Fail"/><category scheme="http://www.blogger.com/atom/ns#" term="Holiday Inn"/><category scheme="http://www.blogger.com/atom/ns#" term="hotel"/><category scheme="http://www.blogger.com/atom/ns#" term="Intercontinental"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="John Moran"/><category scheme="http://www.blogger.com/atom/ns#" term="Temple Bar"/><category scheme="http://www.blogger.com/atom/ns#" term="U2"/><title type='text'>I found what I was looking for, thanks</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmzJuYZSkcbkNAR16yMhBatWsEXP79n2v6F4HcD53GPDYJ1HtYRx5BLf_NA1wYQCb3Rmr0hgN0q5FB7Dq0l_ggXgpwdEJJUkgDGtfLSEwVMC_p9GszM_NngrWgBVfiWE9qYF6GQ2tWBlc/s1600-h/Edge+%26+Bono.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmzJuYZSkcbkNAR16yMhBatWsEXP79n2v6F4HcD53GPDYJ1HtYRx5BLf_NA1wYQCb3Rmr0hgN0q5FB7Dq0l_ggXgpwdEJJUkgDGtfLSEwVMC_p9GszM_NngrWgBVfiWE9qYF6GQ2tWBlc/s320/Edge+%26+Bono.jpg" alt="" id="BLOGGER_PHOTO_ID_5124972925918559170" border="0" /></a>As U2 band members Bono and The Edge try to push through a major refurbishment of the <st1:place><st1:placename>Clarence</st1:placename> <st1:placename>Hotel</st1:placename></st1:place> in <st1:city><st1:place>Dublin</st1:place></st1:city>’s Temple Bar, it seems the owner of the Holiday Inn on <st1:street><st1:address>Pearse Street</st1:address></st1:street> also has designs on the historic quarter.<o:p></o:p> John Moran’s recently established Inn@Temple Bar is likely scouting for a location to open up a new premises at a time when the dwindling number of hotel rooms in the capital is causing concern amongst both tourism and business bodies.<o:p></o:p> Jurys sold its <st1:place><st1:placename>Berkeley</st1:placename> <st1:placetype>Court</st1:placetype> <st1:placename>Hotel</st1:placename></st1:place> and Jurys Ballsbridge sites to developer Sean Dunne for €379m in 2005, and while Dunne has plans to construct a new 220-bedroom hotel on the adjacent sites, it will be some time before that ever comes to fruition, especially since <st1:place><st1:placename>Dublin</st1:placename> <st1:placetype>City</st1:placetype></st1:place> councillors are incensed at his ambitious masterplan.<o:p></o:p> Earlier this year they blocked a draft area plan for Ballsbridge that would have permitted high-rise elements, apparently scuppering Dunne’s blueprints which embrace high-rise construction. Dunne needs a big return on his pricey investment, and top-loading the parcel of land in the prime location is the way to do it.<o:p></o:p> The proposed €150m Clarence make-over is constroversial, although it’s acknowledged that the quays should be a strong focal point for the city. The plan involves demolishing a number of protected building facades and structures. The co-owners – developer Paddy McKillen (who build the Jervis Centre), Bono and the Edge, have threatened that the hotel could be sold if the plans aren’t approved by the council next month. The hotel was acquired in 1992 and has lost €12m since then.<o:p></o:p> Fianna Fáil supporter John Moran seems unperturbed by such a track record and could soon end up a close neighbour. Temple Bar no doubt appeals as a location for a new Holiday Inn, its pedigree far removed from the existing Holiday Inn’s unromantic location on <st1:street><st1:address>Pearse Street</st1:address></st1:street>.<o:p></o:p> This week, Holiday Inn brand owner Intercontinental launched what is believed to be the most expensive global corporate rebranding ever, costing $1bn (€700m). Each Holiday Inn hotel franchisee will be expected to spend a minimum of about €143,000 upgrading each premises. Perhaps Moran sees the rebranding as an opportune time to make a move into the capital’s heart.<o:p></o:p> Just where he’ll get space is the big question.<o:p></o:p> <o:p></o:p><a href="http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/24/bcninter124.xml">http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/24/bcninter124.xml</a><o:p></o:p> <o:p></o:p><a href="http://www.archiseek.com/content/showthread.php?t=6427">http://www.archiseek.com/content/showthread.php?t=6427</a><a href="http://www.archiseek.com/content/showthread.php?t=6427"> </a><a href="http://www.holidayinndublin.ie/">http://www.holidayinndublin.ie/</a> <o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/8002217802792974051/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=8002217802792974051' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/8002217802792974051'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/8002217802792974051'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/i-found-what-i-was-looking-for-thanks.html' title='I found what I was looking for, thanks'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmzJuYZSkcbkNAR16yMhBatWsEXP79n2v6F4HcD53GPDYJ1HtYRx5BLf_NA1wYQCb3Rmr0hgN0q5FB7Dq0l_ggXgpwdEJJUkgDGtfLSEwVMC_p9GszM_NngrWgBVfiWE9qYF6GQ2tWBlc/s72-c/Edge+%26+Bono.jpg" height="72" width="72"/><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-2420665496897583913</id><published>2007-10-23T18:03:00.000+01:00</published><updated>2007-10-27T17:38:31.035+01:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Astrata"/><category scheme="http://www.blogger.com/atom/ns#" term="business"/><category scheme="http://www.blogger.com/atom/ns#" term="GPS"/><category scheme="http://www.blogger.com/atom/ns#" term="Group 4 Securicor"/><category scheme="http://www.blogger.com/atom/ns#" term="Hart to Hart"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Merrill Lynch"/><category scheme="http://www.blogger.com/atom/ns#" term="mutual fund"/><category scheme="http://www.blogger.com/atom/ns#" term="Racal"/><category scheme="http://www.blogger.com/atom/ns#" term="Robert Wagner"/><category scheme="http://www.blogger.com/atom/ns#" term="Shell"/><category scheme="http://www.blogger.com/atom/ns#" term="Stefanie Powers"/><category scheme="http://www.blogger.com/atom/ns#" term="telematics"/><category scheme="http://www.blogger.com/atom/ns#" term="television"/><category scheme="http://www.blogger.com/atom/ns#" term="terrorism"/><category scheme="http://www.blogger.com/atom/ns#" term="Thales"/><category scheme="http://www.blogger.com/atom/ns#" term="Tony Harrison"/><title type='text'>When they met, it was GPS</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLRKAXTxwReb_BNavPHj6vaF_V0e8M7pKymXYHO7KlA7Ecu64xc45AnMuedXPLk5AC75vokmBrkyUTMVgGROtMU2XXZuEufjokFyb8xQtP39nXkhu0kzr-oGRLC3N47LlXDU-ynTyaxj8/s1600-h/Stefanie+Powers+3.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLRKAXTxwReb_BNavPHj6vaF_V0e8M7pKymXYHO7KlA7Ecu64xc45AnMuedXPLk5AC75vokmBrkyUTMVgGROtMU2XXZuEufjokFyb8xQtP39nXkhu0kzr-oGRLC3N47LlXDU-ynTyaxj8/s320/Stefanie+Powers+3.jpg" alt="" id="BLOGGER_PHOTO_ID_5124582521981287346" border="0" /></a>If you’re old enough to recall the cheesy Hart to Hart series that aired in the late seventies to mid-eighties, then the name Stefanie Powers should ring a bell.<o:p></o:p> Powers (as Jennifer Hart, left), fought crime with her “self-made millionaire” husband, Jonathan. As the butler, Max, used to point out, “Mrs H is one lady who knows how to take care of herself.”<o:p></o:p> And indeed she does. Now firmly out of the <st1:place>Hollywood</st1:place> limelight, Powers has reinvented herself not only as a conservationist, but more interestingly, as a savvy businesswoman. And now she’s popped up on the board of a London-based telematics firm, Astrata, co-founded by Tony Harrison of <st1:country-region><st1:place>Northern Ireland</st1:place></st1:country-region>.<o:p></o:p> <st1:place></st1:place>Astrata has developed a system that can be installed in vehicles such as security vans which can detect, for example, when a pre-determined route has been altered. If the on-board system receives information that the vehicle has been hijacked, it can be remotely slowed to 5mph, or stopped altogether, while windows can be jammed to hinder escape. The electronic box is about half the size of a cigarette pack, so can be easily tucked away in the recesses of a vehicle. The system comes at a time when fear of terrorist-related attacks are rife, and Astrata hopes to capitalise on that. Customers signed up to date include Shell, Group 4 Securicor, and the government of <st1:country-region><st1:place>Singapore</st1:place></st1:country-region>, which uses it on trucks transporting hazardous materials.Powers also sits on the board of mutual funds operated by Los Angeles-based Capital Research and Management, having been introduced to the firm’s vice chairman, Jon Lovelace, in 1984. Powers wanted a “simplistic” investment approach, and Lovelace thought that most people were probably thinking along the same lines. Powers even went on to make a seven-part television series sponsored by Merrill Lynch about managing finances. Tony <st1:place>Harrison</st1:place> worked with electronics and defence firms including Racal Electronics and Thales before establishing Astrata (Racal is now owned by Thales).<o:p></o:p> Still a minnow, Astrata is quoted on the more loosely regulated OTC board in the <st1:country-region><st1:place>US</st1:place></st1:country-region>, and has a market capitalisation of just over $16m.<o:p></o:p> Seems that Powers still has a penchant for those self-made millionaires. Or at least, soon-to-be ones.<o:p></o:p> <o:p> </o:p> <a href="http://www.astratagroup.com/">http://www.astratagroup.com/</a><o:p></o:p> <o:p> </o:p> <a href="http://www.btinternet.com/%7Ehighestpub/99092416.HTM">http://www.btinternet.com/~highestpub/99092416.HTM</a><a href="http://query.nytimes.com/gst/fullpage.html?res=9903E4DE1431F931A25754C0A96E958260&amp;n=Top/News/Business/Companies/Merrill%20Lynch%20&amp;%20Company">http://query.nytimes.com/gst/fullpage.html?res=9903E4DE1431F931A25754C0A96E958260&amp;n=Top/News/Business/Companies/Merrill%20Lynch%20&amp;%20Company</a> <o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/2420665496897583913/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=2420665496897583913' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/2420665496897583913'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/2420665496897583913'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/when-they-met-it-was-gps.html' title='When they met, it was GPS'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLRKAXTxwReb_BNavPHj6vaF_V0e8M7pKymXYHO7KlA7Ecu64xc45AnMuedXPLk5AC75vokmBrkyUTMVgGROtMU2XXZuEufjokFyb8xQtP39nXkhu0kzr-oGRLC3N47LlXDU-ynTyaxj8/s72-c/Stefanie+Powers+3.jpg" height="72" width="72"/><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-3987863247333576686.post-8276731554131876326</id><published>2007-10-22T20:44:00.000+01:00</published><updated>2007-10-27T17:39:43.566+01:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Dublin"/><category scheme="http://www.blogger.com/atom/ns#" term="Greater Manchester"/><category scheme="http://www.blogger.com/atom/ns#" term="Ireland"/><category scheme="http://www.blogger.com/atom/ns#" term="Irish"/><category scheme="http://www.blogger.com/atom/ns#" term="Manchester"/><category scheme="http://www.blogger.com/atom/ns#" term="marketing"/><category scheme="http://www.blogger.com/atom/ns#" term="population"/><title type='text'>You don’t get owt for nowt</title><content type='html'><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizJHXgxQ305rDSlNkAoOAjqyy8Uh0t9hyphenhyphenv_KBx77LRomypwMhXEpO6dDNXvtvd2jKB_u0WU1KLYEHAYBTH64sEyOU1ocI4h_m-5qTH3rlt-BZB0AK3_w2p50ED58LuyUIhdXu_dmtSXbg/s1600-h/Manchester_sign+1.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizJHXgxQ305rDSlNkAoOAjqyy8Uh0t9hyphenhyphenv_KBx77LRomypwMhXEpO6dDNXvtvd2jKB_u0WU1KLYEHAYBTH64sEyOU1ocI4h_m-5qTH3rlt-BZB0AK3_w2p50ED58LuyUIhdXu_dmtSXbg/s320/Manchester_sign+1.jpg" alt="" id="BLOGGER_PHOTO_ID_5124250937621134242" border="0" /></a> <o:p></o:p>Next time you hear any business person dismiss the <st1:place><st1:placetype>Republic</st1:placetype> of <st1:placename>Ireland</st1:placename></st1:place> market because it “has a population smaller than Greater <st1:city><st1:place>Manchester</st1:place></st1:city>”, tell them to fire their entire marketing department. The latest example of this was on (yes I’ll admit I was listening), RTE’s Marian Finucane show a couple of weeks ago. Some dimwit, and I can’t recall who, repeated this outdated gem of marketing drivel. It only takes a moment to confirm that the population of Greater Manchester is 2.5 million – about 60% that of the Republic’s. If marketing departments believe 2.5 million isn’t far off 4.2 million, I’d hate to wonder how some chief executives think their businesses are doing.<o:p></o:p> <o:p> </o:p> <a href="http://www.gmep.org.uk/ccm/content/agma/vision-and-themes.en;jsessionid=515AFF608C6241F7CBD6DBDFC686195C">http://www.gmep.org.uk/ccm/content/agma/vision-and-themes.en;jsessionid=515AFF608C6241F7CBD6DBDFC686195C</a><o:p></o:p></content><link rel='replies' type='application/atom+xml' href='http://totalirishblogger.blogspot.com/feeds/8276731554131876326/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=3987863247333576686&postID=8276731554131876326' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/8276731554131876326'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3987863247333576686/posts/default/8276731554131876326'/><link rel='alternate' type='text/html' href='http://totalirishblogger.blogspot.com/2007/10/you-dont-get-owt-for-nowt.html' title='You don’t get owt for nowt'/><author><name>Total Irish Blogger</name><uri>http://www.blogger.com/profile/07264697705124898606</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='https://img1.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media="http://search.yahoo.com/mrss/" url="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizJHXgxQ305rDSlNkAoOAjqyy8Uh0t9hyphenhyphenv_KBx77LRomypwMhXEpO6dDNXvtvd2jKB_u0WU1KLYEHAYBTH64sEyOU1ocI4h_m-5qTH3rlt-BZB0AK3_w2p50ED58LuyUIhdXu_dmtSXbg/s72-c/Manchester_sign+1.jpg" height="72" width="72"/><thr:total>0</thr:total></entry></feed>

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