[AusNOG] Soul/TPG buying Pipe ...

Thu Nov 12 02:18:29 EST 2009

Hmmm.. the NBN comments are interesting..... certainly worth pondering.

I thought Vocus had bought back all its shares from Pipe or something and Pipe didn't own any of it now... could be wrong... James?

...Skeeve

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From: Jai McAulay [mailto:Jmcaulay at business-continuity.com.au]
Sent: Thursday, 12 November 2009 1:30 AM
To: Skeeve Stevens; Brent Paddon
Cc: ausnog at ausnog.net
Subject: RE: [AusNOG] Soul/TPG buying Pipe ...

Hey Skeeve,

I don't know that PIPE was in trouble financially but with the uncertainty that the impending NBN creates for telco assets now may have been a good time. Perhaps also there weren't too many opportunities of any significance in the near term for the international business, given their isn't a diverse route and they weren't likely to fund further build/spurs themselves.

> something not mentioned much here yet is that Bevan has signed a 12 month contract to work for SP Telemedia.... probably meaning he can't take any >major role in the NBN (unless that was the TV channel which I think they own ;-).  So even before the merger/takeover is approved - Bevan has left Pipe >(Pipe International I think) for Soul.

Maybe the new entity will look to position themselves to vend assets into the NBN. They are at least looking to strengthen their position at a time when the framework of the NBN is still to be decided. If you were TPG who would you put in charge of that?

I haven't had a good read of the release but I would have thought the contract would take effect once the transaction had occurred in March/April. Perhaps this is the biggest positive to come out of it. Maybe the new entity will approach the wholesale market with some foresight and positivity.

Interesting times ahead.

What does this mean for Vocus with TPG as a major shareholder?

Jai McAulay

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From: ausnog-bounces at lists.ausnog.net [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of Skeeve Stevens
Sent: Wednesday, November 11, 2009 11:02 PM
To: Brent Paddon
Cc: ausnog at ausnog.net
Subject: Re: [AusNOG] Soul/TPG buying Pipe ...

Brent,

Am I missing something?  Was Pipe in trouble and had to sell? Was there a downward forecast or something?

I will state upfront that I know little about publically listed companies... but with the offer, did they have no choice but to consider and accept it?

I suppose that by being on the market in the first place, a company could be considered to already have been 'sold' - just with no majority holder.  But then again, I don't know what percentage the other board members held/major shareholders - apart from Bevan and Steve's 27% - but if it was more than 50%, as far as I guess, they didn't have to do anything.

I was under the impression that the market was coming back quite well and business was on the rise....   but I am sure there could be myriad of reasons that they have decided to go in this direction.

...Skeeve

--
Skeeve Stevens, CEO/Technical Director
eintellego Pty Ltd - The Networking Specialists
skeeve at eintellego.net / www.eintellego.net
Phone: 1300 753 383, Fax: (+612) 8572 9954
Cell +61 (0)414 753 383 / skype://skeeve
www.linkedin.com/in/skeeve ; facebook.com/eintellego
--
NOC, NOC, who's there?

From: Brent Paddon [mailto:brent at overthewire.com.au]
Sent: Wednesday, 11 November 2009 6:33 PM
To: Skeeve Stevens
Cc: ausnog at ausnog.net
Subject: Re: [AusNOG] Soul/TPG buying Pipe ...

One question I would really like to ask is 'Why Bevan why?'... I realise you guys together only had 27% - but did you have no choice?  I am sure I am not the only one asking 'How could you do this to us?' Is it just about the money?

Skeeve,

Just bear in mind here that as a board of a company that is listed on a public exchange, the directors have to act in the interests of all shareholders.   In the absence of another suitor, their only other choice was to dismiss the bid as being undervalued - probably a bit dangerous given that most brokers had them valued at around the bid price (roughly).

The shareholders would have eaten them for lunch had they chosen to dismiss the Soul bid and things had gone south [remember MS and Yahoo :) ]...

Brent

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