Monday, 9 December 2013

Rivington Street Holdings - What next?

Good Morning, After a busy few weeks I feel compelled to comment on the recent revelations, largely from Dan Levi, on Rivington Street Holdings. The cold hard facts of day are pretty harrowing.
Sadly now shareholders are left stuffed like a Christmas Turkey as RSH shares are now suspended with the administrators and, it seems, the bosses now taking away all the valuables.
Where does it leave Jim Mellon said he had bought it subject to FCA clearance on 17 September. Now we hear that he has not yet applied to the FCA. What must Richard Gill and his few remaining colleagues be thinking as they book a telephone box to hold their Christmas party in?

The question I want to know is why the RSH directors turned down cash bids of£1.15 million for t1ps and Minesite in September only to allow RSH chairman Jim Mellon to have an option to buy the same businesses for just £100,000 a few months later?

Is there a genuine complaint RSH staff and shareholders might have and how best should they escalate it?
I have no material interest either way but would suggest those investors that are pissed off at this time of year to bombard the very people that allowed this to happen. Dan has suggested that protesting at the Master Investor show 2014 might put Mellon on the spot. Yes it will and it should be done.
But why wait? Jim Mellon and Richard Gill – who I hear may be given free equity in a Mellon owned t1ps -surely owe investors an explanation of why the much higher offer was refused? This all happened while RSH was listed on ISDX so why not put a call into regulation at ISDX and ask them if they think it right that Mellon gets to buy t1ps and Minesite at one tenth of the level of an offer he and his fellow directors rejected?
Its pretty simple, honestly is the best policy! '' We all make errors of judgement or a mistake but to cover a cock up with an excuse is unforgivable ''
I genuinely look forward to seeing this one play out....

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(These are but opinions derived from my own experiences and thoughts and do not adopted as statement of fact)

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