Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Is Confusion Once Again Theresa Gattung’s Marketing Tool?

Is Confusion Surfacing Once Again as Theresa Gattung’s Marketing Tool?

2 December 2010

Conflicting information between PGG Wrightson’s audited accounts and an explanation given by Theresa Gattung as a director of Wool Partners Co-operative about a $5.8 million Wool Partners International trading loss, is highly confusing, Waitomo woolgrower Janette Eason-Savage says.

Ms Eason-Savage, a farmer who processes wool, is a member of the Institute of Directors and a qualified and experienced accountant. She says she has reviewed the PGG Wrightson accounts, which stated Wool Partners International had made a $5.8 million loss since it started operation two years ago.

“But nowhere in the Wool Partners Co-operative prospectus to raise $65 million are the losses mentioned,” Ms Eason-Savage said. “There is nothing at all about Wool Partners International’s financial performance to date”.

As a woolgrower and prospective investor Ms Eason-Savage recently joined a teleconference call hosted by Theresa Gattung, who stated that Wool Partners International had traded at a profit over the last two years.

“I asked for clarification and Ms Gattung’s answer was that Wool Partners International would have traded at a profit if it didn’t have to pay interest on its loans and that in the Wool Partners Co-operative structure, there will be shareholders’ funds instead of vendor loans.”

Ms Eason-Savage added that there is also no opening balance sheet for Wool Partners Co-operative, and no independent valuation on how the co-operative agreed the price it will pay for “selected assets” of the Wool Partners International business.

She has called on the promoters of Wool Partners Co-operative to publish the valuations used to determine that purchase price, show what they include and to clarify whether Wool Partners had traded at a loss or a profit since it started operating two years ago.

“My understanding is that information as to the financial performance of Wool Partners International – the business that Wool Partners Co-operative is in substance buying - would have had to be disclosed in the prospectus if WPC was a normal company, but the capital raising rules for a ‘co-operative’ are different. The promoters don’t have to declare whether the co-operative is buying a loss making business or not.

“Show us the balance sheet and publish the full story, so we farmers can understand what we are buying into” Ms Eason-Savage says.
“As a former chief executive of Telecom Ms Gattung once famously told a group of analysts that using confusion as a marketing tool was ‘fine’ and you have to wonder whether we are seeing history repeat itself with Wool Partners Co-operative.”

Ms Eason-Savage said if promoters couldn’t answer fundamental questions about financial viability, they should withdraw their prospectus. Farmers wanted these questions answered and it seems the decision to extend the capital raising closing deadline gives the promoters the chance to do this.

Footnote:
In May 2006, Theresa Gattung told a group of analysts:
“Think about pricing. What has every Telco in the world done in the past? It’s used confusion as its chief marketing tool, and that’s fine.
“You could argue that’s helped all of us keep calling prices up and get those revenues, high margin businesses, keeping going for a lot longer than what would have been the case.
“But at some level, whether they are conscious of it or not, customers know that that’s what the game has been, they know we’re not being straight up.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:

Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: