Opportunity to empower Canada's free press, as a shareholder of CanWest, it is suggested that CanWest seek a partner, that provides at least a billion in funds to CanWest for fifty percent of the stock
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
[It is possible to offer a billion dollars to CanWest to acquire fifty percent of their shares. (Obviously Asper's 10 vote shares would become one vote shares in this.) These funds would be kept seperate, and used as a liquidity fund for CanWest. Business plan would pay down debt over time. CanWest large debt is not from running their businesses, from the purchase price to acquire Canada's newspapers, and manipulate them. Key factor in Canada's economic recovery is to have Canada's newspapers stop scamming. Censoring business numbers wrong. World economic meltdown from news organizations not reporting the news.]
TORONTO, Feb 26 (Reuters) - A deadline is nearing for negotiations between Canwest Global Communications Corp (CGS.TO) and the media giant's lenders to reinstate a credit facility that would help the company stave off a potential bankruptcy protection filing.
Early this month, Canwest -- Canada's biggest media company -- said its banks had limited borrowing on a C$300 million ($242 million) senior credit facility until Feb. 27 to just C$20 million above the C$92 million that had already been advanced to its Canwest Media unit.
The Winnipeg, Manitoba-based company has said talks were continuing to try to lift the borrowing cap after Friday and enable the key subsidiary to comply with its debt covenants.
A company spokesman had no comment on Thursday regarding the timing of any announcement.
Analysts have said it is possible that Canwest, with its debtload of about C$3.7 billion, may file for bankruptcy protection as the weak economy wreaks havoc on advertising revenues at its stable of television stations and newspapers.
Canwest is trying to slash its operating and capital costs and is looking at divesting non-core assets. It is considering selling five conventional TV stations and this week said it has agreed to sell its stake in sports broadcaster Score Media.
Successfully reinstating the credit facility in full would allow Canwest to continue to shore up its operations in the face of the economic slowdown.
CIBC World Markets analyst Bob Bek said on Thursday it's possible Canwest's lenders may be willing to give the company more time if it can convince the banks it can turn itself around.
"I still think it's a softer deadline and that it is easily extended if Canwest has enough concrete 'works in progress' to ease concerns," Bek said. "The banks don't want to force this prematurely."
Canwest is controlled by the Asper family of Winnipeg. It owns the Global television network and a chain of daily newspapers in Canada, including the flagship National Post. It also has television holdings in Australia through its stake in Network Ten.
Companies have cut back marketing spending as they tighten their belts to weather the economic downturn, and that has translated into much less advertising revenue for media groups like Canwest.
Canwest shares were up 3 Canadian cents at 35 Canadian cents on the Toronto Stock Exchange. A year ago, they were changing hands at C$6.11 each.
Friday, February 27, 2009
Thursday, February 26, 2009
Joke statement, not the same balance sheet -- "provide enhanced balance sheet strength for NOVA Chemicals"
Shareholders must unite and defend North American Stock Markets from buy-out frauds
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“This acquisition will provide enhanced balance sheet strength for NOVA Chemicals and facilitate NOVA Chemicals’ growth internationally. We can provide stability and allow NOVA Chemicals to meet its operational and financial requirements while continuing to expand and invest in its business,” stated Managing Director and Board
Member, IPIC, H.E. Khadem Al Qubaisi. “We believe the cash consideration under the Arrangement is very attractive to NOVA
Chemicals shareholders and that the Arrangement is a very positive development for NOVA Chemicals’ employees and other stakeholders.”
NOVA Chemicals will continue to manage its operations and set its business objectives from North America. IPIC appreciates the high quality of NOVA Chemicals management and looks forward to working with the senior management team for the continued success and long-term growth of the company. IPIC encourages significant management autonomy while being available at the Board level to provide strategic guidance and governance. IPIC has no plans to change the current operations of NOVA Chemicals, and the current President and COO, Mr. Chris Pappas is expected to remain with the company as Chief Executive Officer upon the previously announced retirement of Mr. Jeff Lipton on May 1, 2009.
“Working with IPIC will enable NOVA Chemicals to continue to build on our world class technology and take it around the world,” said Chris Pappas, NOVA Chemicals’ President and COO. “This Arrangement is a good opportunity for our employees and our customers to grow our business.”
“The opportunity to join IPIC comes at a good time for NOVA Chemicals and will enable us to offer both stability and long-term growth to many of our stakeholders,” said Jeff Lipton, NOVA Chemicals’ CEO. “IPIC is well financed and has a track record of working successfully with companies like ours.”
[Buy-out removes shareholders as stackholders. The shareholders are the stackholders and deserve respect. SEC Canada.]
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“This acquisition will provide enhanced balance sheet strength for NOVA Chemicals and facilitate NOVA Chemicals’ growth internationally. We can provide stability and allow NOVA Chemicals to meet its operational and financial requirements while continuing to expand and invest in its business,” stated Managing Director and Board
Member, IPIC, H.E. Khadem Al Qubaisi. “We believe the cash consideration under the Arrangement is very attractive to NOVA
Chemicals shareholders and that the Arrangement is a very positive development for NOVA Chemicals’ employees and other stakeholders.”
NOVA Chemicals will continue to manage its operations and set its business objectives from North America. IPIC appreciates the high quality of NOVA Chemicals management and looks forward to working with the senior management team for the continued success and long-term growth of the company. IPIC encourages significant management autonomy while being available at the Board level to provide strategic guidance and governance. IPIC has no plans to change the current operations of NOVA Chemicals, and the current President and COO, Mr. Chris Pappas is expected to remain with the company as Chief Executive Officer upon the previously announced retirement of Mr. Jeff Lipton on May 1, 2009.
“Working with IPIC will enable NOVA Chemicals to continue to build on our world class technology and take it around the world,” said Chris Pappas, NOVA Chemicals’ President and COO. “This Arrangement is a good opportunity for our employees and our customers to grow our business.”
“The opportunity to join IPIC comes at a good time for NOVA Chemicals and will enable us to offer both stability and long-term growth to many of our stakeholders,” said Jeff Lipton, NOVA Chemicals’ CEO. “IPIC is well financed and has a track record of working successfully with companies like ours.”
[Buy-out removes shareholders as stackholders. The shareholders are the stackholders and deserve respect. SEC Canada.]
Document issued to take Nova private
Nova management is selling out their shareholders, by making Nova no longer a stock
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
[Nova shareholders have the right to vote no on tendering their shares. Needs 67% to pass. Vote no.]
From Nova's company webpage
http://www.novachem.com/index.cfm
News Releases
IPIC and NOVA Chemicals Announce Friendly, Recommended All-Cash Acquisition of NOVA Chemicals
February 23rd, 2009
CALGARY, ALBERTA (February 23, 2009) - International Petroleum Investment Company (“IPIC”) and NOVA Chemicals Corporation (“NOVA Chemicals”) (NYSE, TSX: NCX) announced today that they have entered into an agreement (the “Arrangement Agreement”) providing for the acquisition by IPIC of all of NOVA Chemicals’ outstanding common shares (the “Shares”) for a cash consideration of US$6.00 per Share. The acquisition will be implemented by way of a court-approved plan of arrangement under the Canada Business Corporations Act (the “Arrangement”).
The consideration per Share represents a 348% premium over the February 20, 2009 closing price of the Shares on the New York Stock Exchange (“NYSE”) and a 204% premium over the combined and currency-adjusted 30-day volume-weighted average price of the Shares on the Toronto Stock Exchange (“TSX”) and NYSE up to and including February 20, 2009. The total value of the Arrangement, including assumption of NOVA Chemicals’ net debt obligations, is approximately US$2.3 billion.
Based on a C$/US$ exchange rate of 1.2541, the cash consideration equates to C$7.52 per Share. The actual C$ equivalent cash consideration per Share will be based on the C$/US$ exchange rate at the time when the Arrangement is closed.
NOVA Chemicals’ operations are geographically complementary, bringing together IPIC’s existing petrochemicals capabilities in Europe, the Middle East and Asia and those of NOVA Chemicals which are primarily in North America.
The Arrangement is intended to enable NOVA Chemicals to meet all of its obligations to all of its stakeholders and will strengthen NOVA Chemicals’ balance sheet so that its strong assets will continue to operate and expand. As part of the Arrangement, IPIC has agreed to a US$250 million credit backstop facility (the “Credit Agreement”) to provide NOVA Chemicals with sufficient liquidity.
Under the Arrangement, NOVA Chemicals will operate as an independent chemicals and plastics company. It will continue to invest substantially in its Alberta and Ontario operating facilities, and also in its large and very productive research and development facilities in Calgary, AB.
“This acquisition will provide enhanced balance sheet strength for NOVA Chemicals and facilitate NOVA Chemicals’ growth internationally. We can provide stability and allow NOVA Chemicals to meet its operational and financial requirements while continuing to expand and invest in its business,” stated Managing Director and Board
Member, IPIC, H.E. Khadem Al Qubaisi. “We believe the cash consideration under the Arrangement is very attractive to NOVA Chemicals shareholders and that the Arrangement is a very positive development for NOVA Chemicals’ employees and other stakeholders.”
NOVA Chemicals will continue to manage its operations and set its business objectives from North America. IPIC appreciates the high quality of NOVA Chemicals management and looks forward to working with the senior management team for the continued success and long-term growth of the company. IPIC encourages significant management autonomy while being available at the Board level to provide strategic guidance and governance. IPIC has no plans to change the current operations of NOVA Chemicals, and the current President and COO, Mr. Chris Pappas is expected to remain with the company as Chief Executive Officer upon the previously announced retirement of Mr. Jeff Lipton on May 1, 2009.
“The opportunity to join IPIC comes at a good time for NOVA Chemicals and will enable us to offer both stability and long-term growth to many of our stakeholders,” said Jeff Lipton, NOVA Chemicals’ CEO. “IPIC is well financed and has a track record of working successfully with companies like ours.”
“Working with IPIC will enable NOVA Chemicals to continue to build on our world class technology and take it around the world,” said Chris Pappas, NOVA Chemicals’ President and COO. “This Arrangement is a good opportunity for our employees and our customers to grow our business.”
About the Arrangement
The Arrangement will be subject to court and regulatory approval and other customary conditions, including the approval by holders of at least 662/3% of the Shares represented in person or by proxy at a special meeting of NOVA Chemicals shareholders to be scheduled in connection with the Arrangement.
The Arrangement is not subject to any financing condition. An information circular regarding the Arrangement is expected to be mailed to NOVA Chemicals shareholders in March 2009 for a special meeting of NOVA Chemicals shareholders which is expected to be held in April 2009. The completion of the Arrangement would be expected to occur upon receipt of all final regulatory approvals.
The Arrangement Agreement will be filed by NOVA Chemicals on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) and can be viewed by following links for NOVA Chemicals at www.novachemicals.com
Recommendation of NOVA Chemicals’ Board of Directors
The Board of Directors of NOVA Chemicals, after consultation with its financial and legal advisors, has determined that the Arrangement is fair, from a financial point of view, to NOVA Chemicals shareholders and is in the best interests of NOVA Chemicals and its shareholders. It has unanimously approved the Arrangement and resolved to recommend that NOVA Chemicals shareholders vote their Shares in favour of the Arrangement.
In addition, each member of NOVA Chemicals’ Board of Directors and executive leadership group has agreed to vote their Shares in favour of the Arrangement. Both UBS Investment Bank and RBC Capital Markets have provided opinions to NOVA Chemicals’ Board of Directors that the consideration under the Arrangement is fair, from a financial point of view, to NOVA Chemicals’ shareholders.
The Arrangement Agreement contains non-solicitation provisions which limit NOVA Chemicals’ ability to solicit third party proposals, subject to a “fiduciary out” and to certain match rights in favour of IPIC. It also provides for a termination fee of US$15 million plus additional amounts payable under the Credit Agreement and other payments by NOVA Chemicals to IPIC in certain circumstances.
Benefits to North America
IPIC is confident that its acquisition of NOVA Chemicals will deliver significant benefits to Canada and the US, including providing stability to the operations, employees, customers, suppliers and stakeholders of NOVA Chemicals and the North American communities in which it operates. [Sell out of North American industry.]
IPIC recognizes the significant and robust capabilities of NOVA Chemicals’ business and its employees. It is firmly committed to ensuring that NOVA Chemicals’ business continues to play a leading role in the petrochemical industry, by providing both financial and employment stability and the opportunity to grow on the international stage.
IPIC is committed to continuing to invest in R&D as well as capital expenditure projects to maintain and expand the strength of NOVA Chemicals’ current operations in North America.
IPIC is fully committed to the highest standards of corporate social responsibility, understanding that it is fundamental to preserve its long-term competitiveness in the global arena. Maintaining a high level of health, safety and environmental performance and a strong commitment to Responsible Care® in NOVA Chemicals’ operations, and fully complying with all related laws, remain IPIC’s highest priorities.
About IPIC
IPIC is wholly owned by the Government of the Emirate of Abu Dhabi. Its mandate is to invest in the hydrocarbon sector outside the Emirate of Abu Dhabi. IPIC looks to earn a commercial rate of return on its investments and is a long-term equity investor. IPIC has become one of the leading companies in the field of petroleum and energy investment since its inception in 1984. It plays an active role in the development of petrochemical sector in Abu Dhabi through facilitating joint ventures, which benefit from the technology and operating resources of companies in IPIC’s portfolio and Abu Dhabi’s feedstock advantages. IPIC holds equity stakes in Borealis & OMV in Austria and Germany (1998 & 1994, respectively), Aabar in Abu Dhabi (2008), Hyundai Oilbank in South Korea (1999), Gulf Energy Maritime in Dubai (2004), CEPSA in Spain (1988), Oman Polypropylene in the Sultanate of Oman (2006), PARCO Refinery in Pakistan (1995), SUMED Company in Egypt (1995), Energia De Portugal in Portugal (2008),
COSMO Oil in Japan (2007), MAN Ferrostaal in Germany (2008) and Oil Search in Australia (2008). Its estimated net worth is more than US$14 billion.
Additional information on IPIC can be found at www.ipic.ae and at www.ipiccanada.com.
About NOVA Chemicals
NOVA Chemicals is one of North America’s leading plastics and chemicals companies, developing and manufacturing materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals generates approximately 45% of its revenue in the US, 35% of its revenue in Canada, and the remaining 20% in Europe and elsewhere.
NOVA Chemicals develops and manufactures chemicals, plastic resins and end-products that make everyday life safer, healthier and easier. NOVA Chemicals employees work to ensure health, safety, security and environmental stewardship through its commitment to Responsible Care®. NOVA Chemicals Shares are traded on the TSX and NYSE.
Additional Information
For additional information, please visit www.ipiccanada.com
Advisors and Counsel
HSBC is acting as exclusive financial advisor to IPIC and IPIC’s legal advisors are Torys LLP and Clifford Chance. UBS Investment Bank and RBC Capital Markets are acting as financial advisors to NOVA Chemicals and Osler, Hoskin & Harcourt LLP and Wachtell, Lipton, Rosen & Katz are acting as legal advisors to NOVA Chemicals.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
[Nova shareholders have the right to vote no on tendering their shares. Needs 67% to pass. Vote no.]
From Nova's company webpage
http://www.novachem.com/index.cfm
News Releases
IPIC and NOVA Chemicals Announce Friendly, Recommended All-Cash Acquisition of NOVA Chemicals
February 23rd, 2009
CALGARY, ALBERTA (February 23, 2009) - International Petroleum Investment Company (“IPIC”) and NOVA Chemicals Corporation (“NOVA Chemicals”) (NYSE, TSX: NCX) announced today that they have entered into an agreement (the “Arrangement Agreement”) providing for the acquisition by IPIC of all of NOVA Chemicals’ outstanding common shares (the “Shares”) for a cash consideration of US$6.00 per Share. The acquisition will be implemented by way of a court-approved plan of arrangement under the Canada Business Corporations Act (the “Arrangement”).
The consideration per Share represents a 348% premium over the February 20, 2009 closing price of the Shares on the New York Stock Exchange (“NYSE”) and a 204% premium over the combined and currency-adjusted 30-day volume-weighted average price of the Shares on the Toronto Stock Exchange (“TSX”) and NYSE up to and including February 20, 2009. The total value of the Arrangement, including assumption of NOVA Chemicals’ net debt obligations, is approximately US$2.3 billion.
Based on a C$/US$ exchange rate of 1.2541, the cash consideration equates to C$7.52 per Share. The actual C$ equivalent cash consideration per Share will be based on the C$/US$ exchange rate at the time when the Arrangement is closed.
NOVA Chemicals’ operations are geographically complementary, bringing together IPIC’s existing petrochemicals capabilities in Europe, the Middle East and Asia and those of NOVA Chemicals which are primarily in North America.
The Arrangement is intended to enable NOVA Chemicals to meet all of its obligations to all of its stakeholders and will strengthen NOVA Chemicals’ balance sheet so that its strong assets will continue to operate and expand. As part of the Arrangement, IPIC has agreed to a US$250 million credit backstop facility (the “Credit Agreement”) to provide NOVA Chemicals with sufficient liquidity.
Under the Arrangement, NOVA Chemicals will operate as an independent chemicals and plastics company. It will continue to invest substantially in its Alberta and Ontario operating facilities, and also in its large and very productive research and development facilities in Calgary, AB.
“This acquisition will provide enhanced balance sheet strength for NOVA Chemicals and facilitate NOVA Chemicals’ growth internationally. We can provide stability and allow NOVA Chemicals to meet its operational and financial requirements while continuing to expand and invest in its business,” stated Managing Director and Board
Member, IPIC, H.E. Khadem Al Qubaisi. “We believe the cash consideration under the Arrangement is very attractive to NOVA Chemicals shareholders and that the Arrangement is a very positive development for NOVA Chemicals’ employees and other stakeholders.”
NOVA Chemicals will continue to manage its operations and set its business objectives from North America. IPIC appreciates the high quality of NOVA Chemicals management and looks forward to working with the senior management team for the continued success and long-term growth of the company. IPIC encourages significant management autonomy while being available at the Board level to provide strategic guidance and governance. IPIC has no plans to change the current operations of NOVA Chemicals, and the current President and COO, Mr. Chris Pappas is expected to remain with the company as Chief Executive Officer upon the previously announced retirement of Mr. Jeff Lipton on May 1, 2009.
“The opportunity to join IPIC comes at a good time for NOVA Chemicals and will enable us to offer both stability and long-term growth to many of our stakeholders,” said Jeff Lipton, NOVA Chemicals’ CEO. “IPIC is well financed and has a track record of working successfully with companies like ours.”
“Working with IPIC will enable NOVA Chemicals to continue to build on our world class technology and take it around the world,” said Chris Pappas, NOVA Chemicals’ President and COO. “This Arrangement is a good opportunity for our employees and our customers to grow our business.”
About the Arrangement
The Arrangement will be subject to court and regulatory approval and other customary conditions, including the approval by holders of at least 662/3% of the Shares represented in person or by proxy at a special meeting of NOVA Chemicals shareholders to be scheduled in connection with the Arrangement.
The Arrangement is not subject to any financing condition. An information circular regarding the Arrangement is expected to be mailed to NOVA Chemicals shareholders in March 2009 for a special meeting of NOVA Chemicals shareholders which is expected to be held in April 2009. The completion of the Arrangement would be expected to occur upon receipt of all final regulatory approvals.
The Arrangement Agreement will be filed by NOVA Chemicals on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) and can be viewed by following links for NOVA Chemicals at www.novachemicals.com
Recommendation of NOVA Chemicals’ Board of Directors
The Board of Directors of NOVA Chemicals, after consultation with its financial and legal advisors, has determined that the Arrangement is fair, from a financial point of view, to NOVA Chemicals shareholders and is in the best interests of NOVA Chemicals and its shareholders. It has unanimously approved the Arrangement and resolved to recommend that NOVA Chemicals shareholders vote their Shares in favour of the Arrangement.
In addition, each member of NOVA Chemicals’ Board of Directors and executive leadership group has agreed to vote their Shares in favour of the Arrangement. Both UBS Investment Bank and RBC Capital Markets have provided opinions to NOVA Chemicals’ Board of Directors that the consideration under the Arrangement is fair, from a financial point of view, to NOVA Chemicals’ shareholders.
The Arrangement Agreement contains non-solicitation provisions which limit NOVA Chemicals’ ability to solicit third party proposals, subject to a “fiduciary out” and to certain match rights in favour of IPIC. It also provides for a termination fee of US$15 million plus additional amounts payable under the Credit Agreement and other payments by NOVA Chemicals to IPIC in certain circumstances.
Benefits to North America
IPIC is confident that its acquisition of NOVA Chemicals will deliver significant benefits to Canada and the US, including providing stability to the operations, employees, customers, suppliers and stakeholders of NOVA Chemicals and the North American communities in which it operates. [Sell out of North American industry.]
IPIC recognizes the significant and robust capabilities of NOVA Chemicals’ business and its employees. It is firmly committed to ensuring that NOVA Chemicals’ business continues to play a leading role in the petrochemical industry, by providing both financial and employment stability and the opportunity to grow on the international stage.
IPIC is committed to continuing to invest in R&D as well as capital expenditure projects to maintain and expand the strength of NOVA Chemicals’ current operations in North America.
IPIC is fully committed to the highest standards of corporate social responsibility, understanding that it is fundamental to preserve its long-term competitiveness in the global arena. Maintaining a high level of health, safety and environmental performance and a strong commitment to Responsible Care® in NOVA Chemicals’ operations, and fully complying with all related laws, remain IPIC’s highest priorities.
About IPIC
IPIC is wholly owned by the Government of the Emirate of Abu Dhabi. Its mandate is to invest in the hydrocarbon sector outside the Emirate of Abu Dhabi. IPIC looks to earn a commercial rate of return on its investments and is a long-term equity investor. IPIC has become one of the leading companies in the field of petroleum and energy investment since its inception in 1984. It plays an active role in the development of petrochemical sector in Abu Dhabi through facilitating joint ventures, which benefit from the technology and operating resources of companies in IPIC’s portfolio and Abu Dhabi’s feedstock advantages. IPIC holds equity stakes in Borealis & OMV in Austria and Germany (1998 & 1994, respectively), Aabar in Abu Dhabi (2008), Hyundai Oilbank in South Korea (1999), Gulf Energy Maritime in Dubai (2004), CEPSA in Spain (1988), Oman Polypropylene in the Sultanate of Oman (2006), PARCO Refinery in Pakistan (1995), SUMED Company in Egypt (1995), Energia De Portugal in Portugal (2008),
COSMO Oil in Japan (2007), MAN Ferrostaal in Germany (2008) and Oil Search in Australia (2008). Its estimated net worth is more than US$14 billion.
Additional information on IPIC can be found at www.ipic.ae and at www.ipiccanada.com.
About NOVA Chemicals
NOVA Chemicals is one of North America’s leading plastics and chemicals companies, developing and manufacturing materials for customers worldwide that produce consumer, industrial and packaging products. NOVA Chemicals generates approximately 45% of its revenue in the US, 35% of its revenue in Canada, and the remaining 20% in Europe and elsewhere.
NOVA Chemicals develops and manufactures chemicals, plastic resins and end-products that make everyday life safer, healthier and easier. NOVA Chemicals employees work to ensure health, safety, security and environmental stewardship through its commitment to Responsible Care®. NOVA Chemicals Shares are traded on the TSX and NYSE.
Additional Information
For additional information, please visit www.ipiccanada.com
Advisors and Counsel
HSBC is acting as exclusive financial advisor to IPIC and IPIC’s legal advisors are Torys LLP and Clifford Chance. UBS Investment Bank and RBC Capital Markets are acting as financial advisors to NOVA Chemicals and Osler, Hoskin & Harcourt LLP and Wachtell, Lipton, Rosen & Katz are acting as legal advisors to NOVA Chemicals.
Monday, February 23, 2009
ncx.to up 300 percent today -- nova pulled as a public company, shareholders fleeced
Quick Nova finacials
-- lost 48 million for 08, really made 100 million for 08, a special inventory write down to new lower prices, caused a 150 million depreciation, causing the loss on the year.
-- Nova paid down debt of quarter of billion, so was lowering debt. Also Nova has liquidity of a half a billion, and liquidity increased. Total debt around 1.6 billion.
Nova increased from a one dollar and seventy cents, to over 5 dollars in Toronto today
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Nova Chemical Company, trading under NCX.TO, is an example of the importance of developing GAAP to account and measure the use of credit and leverage. Public companies can be made strong by embracing methods to cover recession leverage pitfalls.
If a company borrows is dependent on refinancing. The financial meltdown, interupted Nova's debt programs. GAAP needs to have in its design, more than one type of balance sheet, to represent the leverage investment journey and pitfalls. [The company Nova's webpage and Nova's Sedar posting very lacking on the move to buy out the shareholders of nova for two dimes on the dollar. Shareholders invested into Nova, as deserve rights.]
Nova is an excellant example of a public company that had good earnings history. Traded from 28 five years ago to a high of 60 to 30 again then 25 to 30, then flopped to 1.70 in the world market failure. Fleecing from shareholders to have this company fail.
This can be averted, by having public companies, building special liquidity trusts, seperate from operations, to deal with and avoid anticipatory default. Basically shareholders must demand balance sheet stats that value leverage realities.
~~~~~~~~~~~~~~~~
--had puts on nova at 58, went to 60 plus, then dropped, doubled, sold, and went down more, could have done better
-- nova calls from 34 to 35, made 25%
-- nova calls from 26 to 30 doubled
-- nova calls 25 to 28 doubled
----lost on calls on nova 25, made 25 percent did not sell, then cliff
~~~dropped to 1.70,
Fleecing of a good stock, public companies eaten in bad times
~~~~~~~~~~~~~~~~~~~~~~~~
[NOVA news release. A billion and half debt would seem not so bad for a company that makes almost a million every two days, in good times.]
"CALGARY, Alberta (Reuters) - Abu Dhabi state-owned International Petroleum Investment Co launched a $500 million takeover of Nova Chemicals Corp (Toronto:NCX.TO - News) on Monday, a friendly deal to rescue the plastics maker from a financial crisis due to its high debt. [What is a win for executives of Nova, is a sell out of common shareholders.]
Nova shares, which had lost 95 percent of their value as industry conditions worsened over the past year, quadrupled to C$6.76 on the Toronto Stock Exchange after the firms announced the deal. Nova's New York-listed stock surged $4.06, or 303 percent, to $5.40.
IPIC will offer $6 a share for Nova. With assumed debt, the deal is valued at $2.3 billion.
The stock has been beaten down as demand for commodity chemicals -- used to make everything from food packaging to building materials to electronics components -- withered with global economies. Investors fretted over the company's ability to meet its debt obligations. [Debt obligations and leverage issues, of borrowing.
Nova Chief Executive Jeff Lipton said the company, which has operated independently for 11 years, had pored over several options to remain afloat before agreeing to be bought by IPIC.
Lipton, known for his unbending optimism about the chemical industry, said demand for products has increased, but investors remained fixed on Nova's financing struggles.
"Having been through it, I would tell you the banks, the markets, the financial world are in real turmoil," he told analysts. "But if you can find investments that, once they get beyond the issues -- and most of them will -- have truly outstanding fundamentals, it seems to me that you ought to be thinking about that as investors and not just the short-term concerns."
The deal will allow Nova to strengthen its balance sheet so it can keep operating and expanding, the companies said. IPIC agreed to give Nova a $250 million backstop facility to improve its liquidity.
Meanwhile, Nova won a new $150 million credit facility with Export Development Canada on Sunday, allowing it to meet a key debt commitment before month-end. [Nova could have created an trust made to deal this. Public companies need to make trusts to specifically cover debt obligation hurdles. Getting public companies to over leverage fleeces shareholders.]
Nova has plants in Canada, the United States and Europe that make ethylene, polyethylene, styrene and its derivatives. It is based in Canada but has its executive offices in Pittsburgh, Pennsylvania.
IPIC said Nova's assets will complement its own in Europe, the Middle East and Asia.
The deal marks the latest in a string of Canadian acquisitions for Abu Dhabi companies, although most have been in the oil and gas production business.
Nova's marquee asset is the Joffre ethylene and polyethylene complex in central Alberta, one of the world's largest. It is seen as strategically key because of a low-cost supply of the feedstock ethane.
Lipton estimated that facility is worth $5 billion alone." [No shit.]
news release on ncx
~~~~~~~~~~~~~~~~~~
NOVA Chemicals Corp. announced Thursday it posted a loss of $214 million, or $2.56 per share, in the fourth quarter of 2008. That's down from the profit of $126 million, or $1.51 per share, the chemical company posted in the year-ago quarter.
[Writing down inventory at the new lower prices, big part of loss. Division was profitable before meltdown.}
For full-year 2008, NOVA (NYSE: NCX), posted a net loss of $48 million, or 57 cents per share, compared to a profit of $347 million, or $4.16 per share, for full-year 2007. [Losses not that bad then if 48 million loss, so made 150 million, not including depreciation. Sold for 500 million, means sold for one and half times last year's earnings.]
Lowered demand for its plastic resin products affected the company during the quarter, but CEO Jeff Lipton said NOVA saw an uptick in demand late in the year.
"The company generated strong cash flow, increased its liquidity and reduced debt by $290 million in the quarter, despite a large feedstock cost dislocation and low polyethylene order levels in October and November," Lipton said in a statement. "Customers ran very low on inventory and polyethylene sales volumes rebounded strongly to the highest level in our history for the month of December, and our second best month ever."
[Business increasing, and yet shareholders, that invested and made this company are being fleeced of this public company. Nova was an excellant candidate for the Canadian Federal Reserve to help make solid again. Recovering the stock market by aiding quality. Key ball handling for SEC Canada and shareholder lobby groups, are to make sure good p/e public companies are not scooped up. Very important for stock market recover.]
~~~~~~~~~~~~~~~~
NOVA Chemicals Corp. announced Thursday it posted a loss of $214 million, or $2.56 per share, in the fourth quarter of 2008. That's down from the profit of $126 million, or $1.51 per share, the chemical company posted in the year-ago quarter.
For full-year 2008, NOVA (NYSE: NCX), posted a net loss of $48 million, or 57 cents per share, compared to a profit of $347 million, or $4.16 per share, for full-year 2007.
Lowered demand for its plastic resin products affected the company during the quarter, but CEO Jeff Lipton said NOVA saw an uptick in demand late in the year.
"The company generated strong cash flow, increased its liquidity and reduced debt by $290 million in the quarter, despite a large feedstock cost dislocation and low polyethylene order levels in October and November," Lipton said in a statement. "Customers ran very low on inventory and polyethylene sales volumes rebounded strongly to the highest level in our history for the month of December, and our second best month ever."
[Second best month ever and the public company tells shareholder the company is bankrupt, and has to be sold. Nova excutives win large retirement pay-off packages, nova shareholder loss. Swindle.]
-- lost 48 million for 08, really made 100 million for 08, a special inventory write down to new lower prices, caused a 150 million depreciation, causing the loss on the year.
-- Nova paid down debt of quarter of billion, so was lowering debt. Also Nova has liquidity of a half a billion, and liquidity increased. Total debt around 1.6 billion.
Nova increased from a one dollar and seventy cents, to over 5 dollars in Toronto today
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The Nova Chemical Company, trading under NCX.TO, is an example of the importance of developing GAAP to account and measure the use of credit and leverage. Public companies can be made strong by embracing methods to cover recession leverage pitfalls.
If a company borrows is dependent on refinancing. The financial meltdown, interupted Nova's debt programs. GAAP needs to have in its design, more than one type of balance sheet, to represent the leverage investment journey and pitfalls. [The company Nova's webpage and Nova's Sedar posting very lacking on the move to buy out the shareholders of nova for two dimes on the dollar. Shareholders invested into Nova, as deserve rights.]
Nova is an excellant example of a public company that had good earnings history. Traded from 28 five years ago to a high of 60 to 30 again then 25 to 30, then flopped to 1.70 in the world market failure. Fleecing from shareholders to have this company fail.
This can be averted, by having public companies, building special liquidity trusts, seperate from operations, to deal with and avoid anticipatory default. Basically shareholders must demand balance sheet stats that value leverage realities.
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--had puts on nova at 58, went to 60 plus, then dropped, doubled, sold, and went down more, could have done better
-- nova calls from 34 to 35, made 25%
-- nova calls from 26 to 30 doubled
-- nova calls 25 to 28 doubled
----lost on calls on nova 25, made 25 percent did not sell, then cliff
~~~dropped to 1.70,
Fleecing of a good stock, public companies eaten in bad times
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[NOVA news release. A billion and half debt would seem not so bad for a company that makes almost a million every two days, in good times.]
"CALGARY, Alberta (Reuters) - Abu Dhabi state-owned International Petroleum Investment Co launched a $500 million takeover of Nova Chemicals Corp (Toronto:NCX.TO - News) on Monday, a friendly deal to rescue the plastics maker from a financial crisis due to its high debt. [What is a win for executives of Nova, is a sell out of common shareholders.]
Nova shares, which had lost 95 percent of their value as industry conditions worsened over the past year, quadrupled to C$6.76 on the Toronto Stock Exchange after the firms announced the deal. Nova's New York-listed stock surged $4.06, or 303 percent, to $5.40.
IPIC will offer $6 a share for Nova. With assumed debt, the deal is valued at $2.3 billion.
The stock has been beaten down as demand for commodity chemicals -- used to make everything from food packaging to building materials to electronics components -- withered with global economies. Investors fretted over the company's ability to meet its debt obligations. [Debt obligations and leverage issues, of borrowing.
Nova Chief Executive Jeff Lipton said the company, which has operated independently for 11 years, had pored over several options to remain afloat before agreeing to be bought by IPIC.
Lipton, known for his unbending optimism about the chemical industry, said demand for products has increased, but investors remained fixed on Nova's financing struggles.
"Having been through it, I would tell you the banks, the markets, the financial world are in real turmoil," he told analysts. "But if you can find investments that, once they get beyond the issues -- and most of them will -- have truly outstanding fundamentals, it seems to me that you ought to be thinking about that as investors and not just the short-term concerns."
The deal will allow Nova to strengthen its balance sheet so it can keep operating and expanding, the companies said. IPIC agreed to give Nova a $250 million backstop facility to improve its liquidity.
Meanwhile, Nova won a new $150 million credit facility with Export Development Canada on Sunday, allowing it to meet a key debt commitment before month-end. [Nova could have created an trust made to deal this. Public companies need to make trusts to specifically cover debt obligation hurdles. Getting public companies to over leverage fleeces shareholders.]
Nova has plants in Canada, the United States and Europe that make ethylene, polyethylene, styrene and its derivatives. It is based in Canada but has its executive offices in Pittsburgh, Pennsylvania.
IPIC said Nova's assets will complement its own in Europe, the Middle East and Asia.
The deal marks the latest in a string of Canadian acquisitions for Abu Dhabi companies, although most have been in the oil and gas production business.
Nova's marquee asset is the Joffre ethylene and polyethylene complex in central Alberta, one of the world's largest. It is seen as strategically key because of a low-cost supply of the feedstock ethane.
Lipton estimated that facility is worth $5 billion alone." [No shit.]
news release on ncx
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NOVA Chemicals Corp. announced Thursday it posted a loss of $214 million, or $2.56 per share, in the fourth quarter of 2008. That's down from the profit of $126 million, or $1.51 per share, the chemical company posted in the year-ago quarter.
[Writing down inventory at the new lower prices, big part of loss. Division was profitable before meltdown.}
For full-year 2008, NOVA (NYSE: NCX), posted a net loss of $48 million, or 57 cents per share, compared to a profit of $347 million, or $4.16 per share, for full-year 2007. [Losses not that bad then if 48 million loss, so made 150 million, not including depreciation. Sold for 500 million, means sold for one and half times last year's earnings.]
Lowered demand for its plastic resin products affected the company during the quarter, but CEO Jeff Lipton said NOVA saw an uptick in demand late in the year.
"The company generated strong cash flow, increased its liquidity and reduced debt by $290 million in the quarter, despite a large feedstock cost dislocation and low polyethylene order levels in October and November," Lipton said in a statement. "Customers ran very low on inventory and polyethylene sales volumes rebounded strongly to the highest level in our history for the month of December, and our second best month ever."
[Business increasing, and yet shareholders, that invested and made this company are being fleeced of this public company. Nova was an excellant candidate for the Canadian Federal Reserve to help make solid again. Recovering the stock market by aiding quality. Key ball handling for SEC Canada and shareholder lobby groups, are to make sure good p/e public companies are not scooped up. Very important for stock market recover.]
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NOVA Chemicals Corp. announced Thursday it posted a loss of $214 million, or $2.56 per share, in the fourth quarter of 2008. That's down from the profit of $126 million, or $1.51 per share, the chemical company posted in the year-ago quarter.
For full-year 2008, NOVA (NYSE: NCX), posted a net loss of $48 million, or 57 cents per share, compared to a profit of $347 million, or $4.16 per share, for full-year 2007.
Lowered demand for its plastic resin products affected the company during the quarter, but CEO Jeff Lipton said NOVA saw an uptick in demand late in the year.
"The company generated strong cash flow, increased its liquidity and reduced debt by $290 million in the quarter, despite a large feedstock cost dislocation and low polyethylene order levels in October and November," Lipton said in a statement. "Customers ran very low on inventory and polyethylene sales volumes rebounded strongly to the highest level in our history for the month of December, and our second best month ever."
[Second best month ever and the public company tells shareholder the company is bankrupt, and has to be sold. Nova excutives win large retirement pay-off packages, nova shareholder loss. Swindle.]
Friday, February 20, 2009
Canada supports North Americian protectionism
Canadian interests do support the US's Buy America stimulas package
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But, the newspapers, in many respects, sets the agenda and tone of published public debate. Newspaper editorials are determined by special interests, domestic and foreign.
[Interesting news, Radio program said today, CWG [CanWest Global Communications] controller of Canada's newspapers would be seeking bankrupcy protection shortly; its 3.9billion debt, buy-out debt borrowed (scammed) to control Canada's main newspapers.]
~~~~~~~~
Canada newspaper content determines public debate. Here is a sample of forwarding their version on Canada's economic interests on interational free trade. Far from the truth. Canada endorse the United States to buy American. As the United States biggest trading parnter, it is a concern when Canada's newspapers are run by a special lobby that is anti protectionism, when in fact Canada embraces Obama's limitied protectionist approach.
[Internet news story, Yahoo]
"OTTAWA, (AFP) - US President Barack Obama rejected protectionist trade policies during a careful trip to Canada, on his debut foray abroad since his inauguration last month.
Obama, welcomed by crowds of cheering Canadians, downplayed a controversial "Buy American" clause in his huge economic stimulus plan, which raised fears in Canada and Europe of an anti-free trade backlash in the United States.
"I provided Prime Minister Harper an assurance that I want to grow trade and not contract it," Obama said, against a backdrop of Stars and Stripes and red and white Maple Leaf flags on Parliament Hill.
The clause originally said infrastructure projects designed to kick-start the economy could only use US-made materials but was later watered down to comply with US treaty obligations.
Harper appeared satisfied, but warned barriers to free trade could slow the global economic recovery. "We expect the United States to adhere to its international obligations," he said. "I have every expectation, based on what the president's told me and what he said publicly many times in the past, that the United States will do just that."
But Harper added: "if we pursue stimulus packages, the goal of which is only to benefit ourselves ... we will deepen the world recession, not solve it.""
[Canada supports stimulus packages, Lord Harper.]
.
*******************************************************************
But, the newspapers, in many respects, sets the agenda and tone of published public debate. Newspaper editorials are determined by special interests, domestic and foreign.
[Interesting news, Radio program said today, CWG [CanWest Global Communications] controller of Canada's newspapers would be seeking bankrupcy protection shortly; its 3.9billion debt, buy-out debt borrowed (scammed) to control Canada's main newspapers.]
~~~~~~~~
Canada newspaper content determines public debate. Here is a sample of forwarding their version on Canada's economic interests on interational free trade. Far from the truth. Canada endorse the United States to buy American. As the United States biggest trading parnter, it is a concern when Canada's newspapers are run by a special lobby that is anti protectionism, when in fact Canada embraces Obama's limitied protectionist approach.
[Internet news story, Yahoo]
"OTTAWA, (AFP) - US President Barack Obama rejected protectionist trade policies during a careful trip to Canada, on his debut foray abroad since his inauguration last month.
Obama, welcomed by crowds of cheering Canadians, downplayed a controversial "Buy American" clause in his huge economic stimulus plan, which raised fears in Canada and Europe of an anti-free trade backlash in the United States.
"I provided Prime Minister Harper an assurance that I want to grow trade and not contract it," Obama said, against a backdrop of Stars and Stripes and red and white Maple Leaf flags on Parliament Hill.
The clause originally said infrastructure projects designed to kick-start the economy could only use US-made materials but was later watered down to comply with US treaty obligations.
Harper appeared satisfied, but warned barriers to free trade could slow the global economic recovery. "We expect the United States to adhere to its international obligations," he said. "I have every expectation, based on what the president's told me and what he said publicly many times in the past, that the United States will do just that."
But Harper added: "if we pursue stimulus packages, the goal of which is only to benefit ourselves ... we will deepen the world recession, not solve it.""
[Canada supports stimulus packages, Lord Harper.]
.
Tuesday, February 17, 2009
Obama School of Economics -- Progress and the full measure of happyness
Work in Progress
~~~~~~~~~~~~~~~~~~~~~~~~
The President-Elect has been entrusted to save the World. This is possible with the correct economic policy on key issues.
The Obama School of Economics's philosophy is the idea that the betterment of our Great Society, must embrace fundimental human rights. Advancement over stagnation. It is through correct application that the World can perserver. Progress can find guidance in modern economics, and its approach on fundimental issues of our time offering hope.
Obama's report card and legacy. His ability to forward these key issues in the United States: like the decriminailization of drugs in small amounts; the modernization into universal health care delivery structures; the advancement of audit systems for Banks, and on Wall St; moving forth the notion of paying off the Federal Debt, by limiting debt at a constant, and using the interest that would have gone to service the debt, to in fact, to shrink the debt; the merits of limited protectism to advance free markets and reducing climate change; the trumpt card is tackling Global Warming, and supporting the carbon tax.
Case in point. Huge, opportunity for World here. President Obama is visiting Capital of Canada, and will be told that the Canadian positon is for tradable Carbon caps. Watch out for this President Obama, the Canadian position for a cap and trade green house credits model, is bad economics. Inefficient compared to the carbon tax. Caps do not produce revenue to fund alternatives, the carbon tax does.
Debate is for an instant tax (cap and trade), that is sold and then the holders of these caps can make CO2, the rest of us can not. Or an annual tax on carbon emmissions that allows production, but has a strong limiting force in the pocket book. Plane emmissions tax for example.
Irony, Gordon Campbell, Premier in BC, started a carbon tax [whole other story] and the NDP are for a cap and trade model, and against the Carbon tax. Massive international reothoric lobbying for a Carbon Cap-and-Trade model.
Key problems with Cap-and-trade model: losing the right to production if no cap credits. Supports inefficient industry. Whereas, the carbon tax protects the domestic freemarket's right to produce.
Key misinformation on the cap-and-trade model is that there is no carbon tax then. In a cap and trade model, there is still a carbon tax to those without cap credits, to still provide for production. The cost to buy-out cap-and-trade will be expensive in time.
Key political balling handling for Obama is to have a national referdeum on the climate change. Votes count. Supporters, that the World's Climate and Oceans are a key measure of our happyness, will vote for the carbon tax. Referedum will stir faith. Question One, asking if there should be a charge on greenhouse pollution. Second question, asking between a carbon tax and the cap and trade. Vote and decide. Lobby groups trying to convince the mainstream, on the value of carbon caps and trade credits, trying to access hundreds of billions in carbon credits for nothing. [Carbon caps are putting the envirnment.]
The world of democracy is something that evolves. Huge responsibility has been given the President Elect to guide the World into prosperity. Keep the Faith.
~~~~~~~~~~~~~~~~~~~~~~~~
The President-Elect has been entrusted to save the World. This is possible with the correct economic policy on key issues.
The Obama School of Economics's philosophy is the idea that the betterment of our Great Society, must embrace fundimental human rights. Advancement over stagnation. It is through correct application that the World can perserver. Progress can find guidance in modern economics, and its approach on fundimental issues of our time offering hope.
Obama's report card and legacy. His ability to forward these key issues in the United States: like the decriminailization of drugs in small amounts; the modernization into universal health care delivery structures; the advancement of audit systems for Banks, and on Wall St; moving forth the notion of paying off the Federal Debt, by limiting debt at a constant, and using the interest that would have gone to service the debt, to in fact, to shrink the debt; the merits of limited protectism to advance free markets and reducing climate change; the trumpt card is tackling Global Warming, and supporting the carbon tax.
Case in point. Huge, opportunity for World here. President Obama is visiting Capital of Canada, and will be told that the Canadian positon is for tradable Carbon caps. Watch out for this President Obama, the Canadian position for a cap and trade green house credits model, is bad economics. Inefficient compared to the carbon tax. Caps do not produce revenue to fund alternatives, the carbon tax does.
Debate is for an instant tax (cap and trade), that is sold and then the holders of these caps can make CO2, the rest of us can not. Or an annual tax on carbon emmissions that allows production, but has a strong limiting force in the pocket book. Plane emmissions tax for example.
Irony, Gordon Campbell, Premier in BC, started a carbon tax [whole other story] and the NDP are for a cap and trade model, and against the Carbon tax. Massive international reothoric lobbying for a Carbon Cap-and-Trade model.
Key problems with Cap-and-trade model: losing the right to production if no cap credits. Supports inefficient industry. Whereas, the carbon tax protects the domestic freemarket's right to produce.
Key misinformation on the cap-and-trade model is that there is no carbon tax then. In a cap and trade model, there is still a carbon tax to those without cap credits, to still provide for production. The cost to buy-out cap-and-trade will be expensive in time.
Key political balling handling for Obama is to have a national referdeum on the climate change. Votes count. Supporters, that the World's Climate and Oceans are a key measure of our happyness, will vote for the carbon tax. Referedum will stir faith. Question One, asking if there should be a charge on greenhouse pollution. Second question, asking between a carbon tax and the cap and trade. Vote and decide. Lobby groups trying to convince the mainstream, on the value of carbon caps and trade credits, trying to access hundreds of billions in carbon credits for nothing. [Carbon caps are putting the envirnment.]
The world of democracy is something that evolves. Huge responsibility has been given the President Elect to guide the World into prosperity. Keep the Faith.
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