Anonymous Source: BS&T – Neal & Massy Deal To Be Called Off (Until After The November Election)

“Generally Accepted Accounting Principles” To Be Named As Reason For “Calling Off” Merger

Alright folks… we know we dropped a clanger with our post about VECO’s new CEO (although so much good is happening because of that happy accident – more about that later) so we want everybody to understand that this story comes from an anonymous source whose information has been accurate in the past.

This doesn’t mean that we aren’t all being set up or played like a fish… or that the story is not true. It means that at this stage, the story is nothing more than an unconfirmed rumour from an anonymous source.

But the story is interesting enough that we are going to put the “rumour” out there and see what happens.

Just so you know… at this point this is totally unconfirmed rumour.

Merger / Take Over Delayed For Barbados Election

The merger of Barbados Shipping & Trading Co. Ltd. (BS&T) and Neal & Massy has been “called off”. Barbados will later hear an explanation that GAAP (Generally Accepted Accounting Principles) is the reason for the action, but this is merely an excuse to take the “merger” off the issues table during the coming election.

The merger will occur in 2008 long after the Barbados elections that are scheduled for this November. When the merger is “called off for now” the populace will get the impression that they have won and that Prime Minister Arthur has responded well to popular opinion.

Government Inner Circle Searches For Internal Leak

BFP’s earlier post detailing November as the election has triggered a search for an internal leak within the Barbados Labour Party, however the point of no return has already passed, so November still stands as the election date.

That’s it folks – and it is no different than you will hear around the standpipe.

Barbados Free Press is just a bigger standpipe, that’s all.

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24 Comments

Filed under Barbados, Business

24 responses to “Anonymous Source: BS&T – Neal & Massy Deal To Be Called Off (Until After The November Election)

  1. Wishing in Vain

    Really not sure about this November timing, this is way to long to wait for these clowns to get their behinds evicted from the corridors of the house, they need to go now if not sooner.
    I will stick with you on your call that the merger will be delayed until after elections, but why delay it when it will happen one way or the other.

  2. K

    Sorry guys, I don’t buy it.

  3. TheTrashHeap

    The BS&T deal maybe a done deal. Last night on the news I watched as Barbados Light and Power announced a rise in rates due to rising oil prices worldwide. Ok, good excuse but they didn’t do it when oil prices were at record levels and even after the gubbermint raised the fuel prices at the pump. Then edited into the story is how if the deal with Trinidad comes through how beneficial it would be for them and everyone, it seems like that deal is going to be forced down our throats. With the sell off to Trinidad in full speed we could as well be voting for either UNC or PNM rather than Bees or Dems. BS&T better remember Clico and Plantations. Wonder when they going to gobble up Goddards.

  4. Rubbing hands with glee!

    Everytime Oil goes up, it fuels a whole pile of price increases.
    Increased VAT of petrol, gas, diesel.
    Increased VAT on electricity.
    Increased VAT on nearly everything else that people have to buy.

    Therefore increased revenue to Government and thats what helps pay for all the monies wasted.

    Its as simple at that!

  5. Warrior

    Wasn’t there also something in the News about the Bermudez Biscuit – another Trinidadian firm – buying up one of our oldest manufacturers – WIBISCO.

    No more Shirleys for me then.

  6. Warrior

    Rubbing hands with glee!
    June 8th, 2007 at 7:20 pm

    Everytime Oil goes up, it fuels a whole pile of price increases.
    Increased VAT of petrol, gas, diesel.
    Increased VAT on electricity.
    Increased VAT on nearly everything else that people have to buy.

    Therefore increased revenue to Government and thats what helps pay for all the monies wasted.

    Its as simple at that!

    +++++++++++++++++++++++++++++++++++++++++
    I agree with you completely.

    Trash Heap :- and to show you how conniving these ppl are:-

    They wait until summer time when the heat will swelter and you need to run your air-conditioners in your homes and cars and fans for those who don’t have AC units at home.

    They do it when they know that the children going to be home from school and will open your refrigerator 1000 and 90% will leave it open so they can stare into it, and you and the Supermarket personnel will know each other by first name.

    I have long believed the BL&P to be crooks. They said that they were putting in a new generator so that the customer would benefit from lower, since then my electricity bill has been sky high despite living in almost total darkness.

    I now know how those white clothes used to feel when me old Granny used to use the jukking board. We getting lick, left, right and centre. Oh Lord!!! Somebody help Barbados.

  7. what opposition?

    all this going on and being manipulated on a daily basis.

    Where oh where is the leader of the opposition???

    Oh I forgot, they don’t want to give away their strategy.

    and if you believe that, I have a cricket stadium I can sell you or will the Chinese finance it?

    Owen is in China with cap in hand playing the US against the Caribbean. I love these geopolitical blackmail efforts.

    I say lets give Barbados to China. At least they know how to deal with corruption when they get around to it. There are no long legal delays, just a bullet in the back of the head right after they sell your organs.

    How will the Chinese bail out the latest financial disasater and what will Barbados have to give up in return? Maybe the Chinese will understand that all monies in Barbados have been spent wisely and judiciously and will just want to help us out of the goodness of their hearts?

  8. justice

    Should that not be PRINCIPLES rather than PRINCIPALS in the sub-title to the headline?

    ******************

    BFP Replies

    Yes, so we’ve changed it.

    Then again…. maybe we were correct the first time! ;-)

  9. TheTrashHeap

    Bermudez already has a huge stake in Wibisco, they just want the whole thing. Trinidad is making sense in investing their money in a supposedly stable economy so they just gobble up local companies whenever the opportunity presents itself. The thing that puzzles me is those companies sold everything off like they were not profitable, but then the Trinis comes in and pay top dollar for those businesses and makes good money. Remember BNB before it was BNB Trinidad limited? The gubbermint had BNB operating at a loss for many years and as soon as they got profit out of it, they sold it to the Trinis, then the Trinis not only turned it into the #1 bank in the island but I also heard they got back the money they invested in the sale through some bonds or something the gubbermint had but became theirs through the sale. How they did it, through marketing where they can get people to take out cracker jack box loans with their add on interest rates and end up paying more back than if they got one from Royal or Scotia who are criminals as well.

  10. Zulu

    Justice
    The word should be “PRINCIPLES” and not principals.

    As far as I know, BL&P is the only power company that uses 50 cycle system. Why can’t they use 60 like the rest of the world?
    Wouldn’t it be netter for comsumers if 60 cycle was in use? Something really fishy about that system.
    I am no engineer, but something doesn’t seem right. When appliances are brought from the USA, things with timers are of no use because 10 minutes are lost every hour.
    The UK uses 50 cycle but they have 220 volts.
    I somehow think that BL&P making a killing with their current set up. (pun intended)

  11. Sparky

    ZULU:
    correction ,UK: 50 hertz, 240V

  12. TheTrashHeap

    Barbados utilizes 2 standards, we use british switches and american plugs. The 110v 50hz always puzzled me as to why they went this way. It would have been easier to go with one rather than both and preferably the US standard which uses single phase 110v and 2 phase 220v rather than single phase 240v that the british uses. The television system would then have to be the British PAL system because the televisions compatible with that system would only be ones designed for the British market, or use a transformer for the television. The equipment we buy would suffer because stuff like heaters would work ok but anything with a motor will run at 20% reduced power and pull more current. Stuff that runs on the old timers like old microwaves, washing machines etc would be running slower than usual, the new microprocessor controlled does not see the a/c voltage so frequency is not a factor, most modern microwaves, washing machines etc uses switch mode power supply units so the frequency isn’t a critical factor anymore so thats why courts will say 110v/50hz made for Barbados.

    The problem is even bigger now since the government engineering started using NEC standards as well as IEE standards so getting into why we use this and that will be lengthy debate. If they wanted to suggest something they should encourage people to use 220v refrigerators and 220v lighting around the home and cut current usage in half.

    The natural gas is beneficial from trinidad wasn’t just tossed in by chance, they are going to use this raise in prices to push the deal, just watch the cronies in the coming weeks. If my memory serve me correct the Barbados Light and Power brought in natural gas generators years ago and they were useless because we didn’t have enough natural gas and the pressure was too low to drive the generators, so it was waste money on their part, the low speed diesel gens was supposed to cut the cost but as a previous poster said it just keeps going up since.

    Another thing is quality, we buy junk gas from Trinidad and junk Diesel, thats why some cars give hell to run because of poor octane levels, even the diesel BMWs the gubbermint is giving away to the inner circle gave problems because of the poor quality diesel we get, yet we pay Trinidad more for gas than the americans who get premium gas does, so question is are we going to get screwed by them again?

    Enough blabbering for now. Just pisses me off.

  13. No-name

    BFP,
    If you are right the PM is really a creature of corporate Barbados. This postponement does not make sense. So many things seem to be going wrong since CWC!

    All this development is certainly not in the interest of Bajans. We need to take control of what is happening or else Errol Barrow’s prediction will come true. This is depressing……Owen and his mob thiefing, Trinidad buying our most profitable assets; land prices beyond the reach of the average bajan; chinese labour about the rival the Guyanese construction workers, food prices increasing daily; electricy increasing significantly, gas prices increasing; no water in some areas of the island after 9.p.m, airfares redicuously high……

  14. FamilyB

    is it just me? perhaps I’m reading too many of these ‘conspiracy’ blogs, dunno … but I kinda found it strange that the Honorable Minister for Whatever she’s minister for these days announced that fuel prices were due to go up, then for BL&P to announce their planned increase in fuel charges?

    Sounds like cart leading horse to me … but then again …

  15. Paddy O'Furniture

    GAAP as an excuse to prevent a merger is odd since the accounting standards in Trinidad are identical to the standards used in Barbados.

    The business practices at BS&T may not conform to GAAP. That is much more likely.

    I hope Neal & Massey conduct a thorough financial due diligence.

  16. BFP

    Justice Said

    “Should that not be PRINCIPLES rather than PRINCIPALS in the sub-title to the headline?”

    ******************

    BFP Replies

    Yes, so we’ve changed it.

    Then again…. maybe we were correct the first time! ;-)

  17. anon

    any comment on the share exchange of 2.75 shares in BS&T for 1 share in the newly amalgamated consolidated entity

  18. Apolitical

    Mergers and takeovers are not unusual in the international corporate world. In North America over the last 10 years we have had mergers and takeovers occurring almost on a weekly basis – i.e. banking, pharmaceutical and financial sectors.

    Once companies are publicly traded mergers and takeovers are inevitable. Think about it – what stops a billionaire – from taking over 75% of the companies trading on the Caribbean Stock Exchange? Nothing!

    I as a shareholder of BS&T expected that we would have been open to a take over by 2010. While I expected the player to be Sears/ Target/ Wall Mart – this take over did not come as a surprise.

    I see nothing wrong with Neal and Massey being the entity that has taken over BS&T’s shares. We Bajans need to move into the 21st century and realise that you can’t have your cake and eat it. Once you are a publicly traded company – any company – you are opening the company to be taken over by an entity that is capable of doing such. This is not rocket science!

    My advice to my fellow Bajans would be to wake up to a new era; invest wisely so that you can take advantage of those who are willing to pay you top dollar for your shares in any publicly traded company.

    In spite of the fact that Neil and Massey are taking over BS&T I will hold onto my shares, for there is every likelihood that some bigger fish will offer me more within the next five years.

  19. Yardbroom

    A little word of warning for those thinking of investing their nest egg in stocks and shares with the idea of making a killing. Shares go up as well as down, just be careful that you are prepared for, and can afford to lose your investment, disaster beckons for the unwary.

  20. J. Payne

    CARICOM got their take-over warning way back when CEMEX tried to take over Trinidad Cement Limited.

  21. J. Payne

    I predict eventually an outside company will try to pluck ONE Caribbean Media. (a.k.a Nation etc.)

    The only wat Caribbean companies could be public listed, and be able to resist all hostile take overs is if the CEO or Company held the majority of shares in their own company.

  22. Somebody help Barbados

    well…hmmmm…i thinking…

    if the merger is to happen after election and the laughlin group to get permission to build their thing after election and some of teh thiefery have implications long long into the future…VECO And others….i think we better call the observers right now…

    it looking to me more and more like regardless of who the people elect they gun only get one party the b….bu hook or their favourite way crook….wunna scaring me…but i still want the election so call the observers and then ring the bell….

  23. Inkwell

    It seems that BFP has suppressed, without any stated reason, a comment I made Sunday a.m, critical of their treatment of this subject. I guess the truth hurts. and only some should have the freedom to speak on their blog.

  24. Somebody Help Barbados

    i got this one BFP…

    inkwell hit send again…there is nothing there under moderation so maybe it was not sent…

    BFP could take their licks good man…(trust me i know) they stubborn and when they hold on pon something(they press freedom) they doan let go…but they take their licks…

    ###############################

    on the other hand….

    if they did block your mail it only goes to show that BFP knows that even the freest press cannot not be truly free…for freedom of press is a right and with rights come responsibilities….like not standing in the way of an emergency…

    lol…lol…and lol….i gest givin some trouble 2day….

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