Hollywood Media Share Discussion Threads

[zynks] 23/5/2003 00:32

I just called the FSA. They said it HOL is currently being investigated. The person in charge will call me later with further information. Will keep you updated.

[oldtown] 23/5/2003 00:27

We will see m.e.c, But believe me sonshine, city bankers are not the charity workers that you would have us think.
I have been the bear on this thread since January, but now see value in this stock.

[flat eric3] 23/5/2003 00:23

You do also get the option of a "unit alternative" as opposed to cash if the offer goes through. This may be a better option to selling and then holding for the turnaround bearing the stipulated cost cutting that must be implemented saving initially £87M? (so much to read that I can't find the exact figure again). At 25p, and bearing in mind that new senior executive's will be brought in even tho' Ginsberg and Reddish will continue to have some involvement with the company, this could be a better option than selling now at a big loss. However, HC Group reserve the right to pull out of any offer and then you get a big fat zero as HOL is liquidized in the juicer!
What do you think Merc?

The Flat One.

[zynks] 23/5/2003 00:23

From the site indicated by el-tel:

"Vetting at entry aims to allow only those firms and individuals satisfying the necessary criteria (including honesty, competence and financial soundness) to engage in regulated activity. Once authorised, we expect firms and individuals to maintain particular standards set by us. We monitor how far firms and individuals are meeting these standards. Where serious problems arise we investigate and, if appropriate, discipline or prosecute those responsible for conducting financial business outside the rules. We can also use our powers to restore funds to consumers"

I guess it makes sense to follow both routes if we have the necessary information together.

[mercier et camier] 23/5/2003 00:19

oldtown

After due diligence they decided they did not want to buy it. However the management offered to sell their shares at such a low price that the backers now consider the risk might be worth taking on. This is why the talks have been going on for so long. There is a very high probability that they can pull out if conditions deterioate. A lot hinges on the support of the banks. There is no upside to this stock.
The press will maul this company tomorrow AVOID.

[el-tel] 23/5/2003 00:15

if anyone wishes to pursue this further the financial services authorities website is and a general enquiries telo is 0845 606 1234, a few telos might stir things up !!

[zynks] 23/5/2003 00:14

How to complain to the London Stock Exchange:


I would like to place a complaint, but the best thing imo would be to put the case together properly. What evidence of unethical management do we have?

[anglia] 22/5/2003 23:56

Oldtown- Have been out all evening & see Esmerelda replied to your question. I am intrigued by your change of stance (from long term bear) now that the bid has appeared. I feel genuine sympathy for a number of posters on here who were £10k, £7k down etc (when the price was a lot higher). Indeed if I remember correctly a writer for the TMF was approaching £100k losses from being about £20k up (and that writer was genuine although the actual losses I cannot remember exactly).
As I have said before your posts have generably been sensible (rather than rants) hence my interest in your change of stance.

[gelp] 22/5/2003 20:52

.... 73 million of committed expenditure? If I can`t afford my new conservatory I would scale down or cancel it. Some of the the contractors should be more worried than us!
Again looks to me like a scaremonger to try and grab on the cheap. Perhaps some one inside can really tell us what the committed expenditure means. And what efforts have been made to cancel , defer or reschedule the works.
The non execs should be standing up and asking for better offers openly. The co is for sale - lets see the auction and a big FOR SALE SIGN. Asking 80p starting offer 25, who wants to go next!
With trading profit and write downs off the balance sheet looks well cash positive so the banks will queue up to lend.

[oldtown] 22/5/2003 20:50

short,
He has told everyone tonight that he was just having a laugh and owns no shares, so i dont think he has lost anything.
Expect his self respect

[avatar o8o] 22/5/2003 20:39

Have been in and out and following this story for some time now, so comiserations to all you holders who waited for the final bid to materialise. Holmes has been a sorry tale and for sure serious doubts exist as to the credibility of the management.

If trading has naturally been as bad as they claim, without them being able to stop the rot, what good will they be to the new backers? - and whatever they expect to do for them why couldn't they have done it for the plc?

To those of you who maintain this is such a bargain at this price, with all the consolidation in the industry recently, if that really is the case, then another offer may well come in. When the equity is worth so little to the overall debt, it doesn't take much extra cash to sweeten an offer significantly for the current shareholders.

If you are that disgusted with the 25p it might be worth your while hanging out for the possibility of another offer materialising. If all else fails, wait for the offer to complete and get your 25p that way!

[esmerelda] 22/5/2003 20:38

Just reading the iii posts and this was the one Morocco Mole had posted to which the above was the reply (slightly edited):

1) Can the MBO Offer be defeated ?

2) Is that a good idea ?

It is correct that the Directors have made a (not particularly) veiled threat that the company might stop trading in the event that the offer is refused. However the language used in the Offer document requires close analysis. Whilst pessimism abounds on "alternative funding" and the same old negative trading statements are repeated, it is striking what is said about support from the company's bankers. The document states that "there is no guarantee that" the company's banks will continue to support" the company. Well I am sure that it is true that there is no guarantee, but this hardly suggests that the bankers have withdrawn support.

Accordingly my assessment is that the threat of a cessation of trading is at best vastly exaggerated, and at worst is an attempt to shakedown shareholders and force them to vote for the offer.

Furthermore, given the derisory level of the MBO offer, one has to ask what would be the consequence if the banks did withdraw support ? The answer would probably be administrative receivership controlled by the banks. This would not necessarily mean a fire sale of assets, but even if it did, HOL is balance sheet solvent and there are lots of interested asset buyers. Would the result be worse than 25p per share ?

On balance, I have concluded that it is a good idea to try to defeat this Offer for 3 reasons. First, I do not believe the management threat that the sky will fall in and all shareholder value will be lost unless the offer is accepted. Secondly, I believe that the offer does not fairly value the company and that shareholder value would be better protected by continuing trading. Thirdly, there remains the prospect of a higher bid from a third party.

[oldtown] 22/5/2003 19:48

anglia , what question was that?

[anglia] 22/5/2003 19:43

Below was posted on iii (by Alan Baylis):


"Can I avoid entering the slanging match and give an answer to one of the questions posed here.

Firstly, as a former shareholder of Thistle Hotels which only recently go taken over, I have first hand experience of how the timetable for takeovers operates. For the bid to go unconditional they need just over 50% of the shares to back the bid. At that point the bidders have complete control of the company and can seek to have it delisted from the stock exchange thus making it almost impossible to trade the shares. Accordingly most people and institutions will accept once 50% has been achieved and eventually when the company has 90% it will apply to compulsory purchase the outstanding shares. There is no value in holding on once the offer is unconditional but there is value in not accepting the offer until that is the case.

The initial offer is often not the final offer. The buyout team will now be in discussions with the institutional holders to seek their acceptance. IMHO they will leave it to the last minute to accept in case another bidder emerges. Alternatively they will withhold acceptance unless an extra 10p is added to the offer or whatever. What the bidders will be doing at this very moment is to see what it is they need to do with their offer to unlock the 24% of the shares they need to get control of the company.

There are various timetable stages to a bid. Firstly the offer documentation has to be formally issued before the 60 day clock starts. Then there are a couple of 'closing' dates at which point the bidders will announce how much they hold and that the offer timetable has been extended until the next date. Before the clock finally runs out they will have 'done a deal' with sufficient institutions to get the necessary votes BUT that might well mean more money for existing shareholders. Whilst the share price remains above 25p they cannot increase their holding by buying shares in the market.

If you are interested in seeing how a bid progresses then I recommend you put THO in your portfolio and read the news messages for the last three months.

My second point is that tabelling a bid is usually the signal for other groups to START to consider a counter offer. A lot of you have suggested Cannons might be interested but whoever it is needs to be able to stump up the £73m of future committed expenditure which derailed the company in the first place. I don't know whether they can afford to do that but if I were in their place AND interested (a big if at this stage) then I would be looking to sell the European assets (and I think we know who might be interested in those) and use that money to fund the requirement for future expenditure. (I don't know whether the £73m is for UK or European construction. If some is for the latter then I will have disposed of some of that liability as well). The counter bidder will then be able to retain the remaining UK assets.

My third point addresses the second issue raised in MM's post. I find it unbelievable that the company has the nerve to say if the offer fails then we will have to go to the banks to seek the additional funds. What have you been doing since Christmas (I'm shouting in small letters!) Don't you know yet whether these funds would be forthcoming or not? Don't you think we, as shareholders should be told that? I completely agree with what Morroco Mole says on this point. I won't be accepting the offer until it goes unconditional and I suggest no one else does either until the position becomes a lot clearer. "

[farsight] 22/5/2003 18:58

The FSA won't do anything. Their purpose is to maintain investor confidence. Work it out. Like Midas told me after LGD, one whiff of MBO and you should run a mile.

[insiderboy] 22/5/2003 18:54

ME TOO!

JUST LOST EVERYTHING...........I CAN'T GO ON.............AND HOTFINANCE IS AN IMPOSTER!..........my life isn't worth living for!!!!!!!!!!!!!!

[insiderboy] 22/5/2003 18:50

HOT
lol,lol,lol,lol,

ONCE A C*NT......ALWAYS A C*NT!!!!!!!!!!

I feel sorry for the sucker whose photo's you used as your's!

Have a 'five knuckle shuffle' on that did you....D*CKHEAD!

[esmerelda] 22/5/2003 18:35

One point I would correct M&C on. You said:
"These undertakings remain binding even in the event of a higher competing offer being made for Holmes Place". The backers have secured 26.3% of the shares. They only need to purchase or secure 23.7% and they are in control of the conpany. No third party can usurp them.

If you read it again you will see that only the shareholdings of the independent directors are irrevocably committed, that is 0.12%. The other 26%, held by the main directors, is conditional on the offer becoming unconditional and therefore a higher bid would release them from that obligation. I agree they need only to obtain another 23.7% but they still have to do that. As someone else said even the bidders for Thistle Hotels, who only needed 4%, had to raise their offer to get that.

On a no-M&C related point:
“In the event that Holmes Place Shareholders choose not to accept the Offer, the Company will have to renegotiate its banking arrangements in order to continue trading. There is no guarantee that the Company's banks will continue to support the Group”.

I would simply ask why this statement does not say “We have tried to renegotiate the banking arrangements but the banks say no”. I read it as saying we haven’t yet entered into negotiations with the banks so we can’t tell you whether they would support us or not. Why not, you’ve known about this since Christmas?

I am going to wait to see if another bid emerges before accepting this one. At least the price is unlikely to go below 25p in the next few weeks!