New Storm Warning For Battered Gio

Sun Herald

Sunday September 19, 1999

DAVID POTTS

ANOTHER hurricane is blowing through the financially depleted GIO. AMP is apparently planning a roadshow of major funds this week to top up reserves for GIO's insurance liabilities, rather than sell the merits of what would have to be a highly unlikely second takeover attempt. GIO told Fagin that Hurricane Floyd had, thankfully, turned into a fizzer, but one gloomy analyst values GIO's net assets below 50? a share. That valuation, compared with the share price of $2.68 which has been helped by talk of an AMP mop-up bid, suggests there's more faith than assets. Market talk that the National is no longer dealing with GIO in the money market appears to be just that talk. GIO and NAB claimed surprise when asked if it were true. An unfortunate newspaper advertisement last week was headed ``Worried about your retirement? That's a good start." That would have struck a chord with hapless shareholders who didn't accept AMP's offer last year.

Lion's share

MEANWHILE, shareholder agitator Jack Tilburn, who likes a good stoush, has bought 200 shares in GIO so he can rant and rave at the annual meeting on October 25.

He paid $2.58 each or $516 plus brokerage and stamp duty for a day of fun and frolics. Mind you, he had earlier accepted AMP's $5.35 a share offer for his 800 shares.

Food for thought

THE alternative Jeff Kennett website (www.jeffed.com.au), set up by journalist and disgruntled former staffer Stephen Mayne has this endearing account of the Victorian Premier's relations with the media moguls he courts while ``beating up on frontline journalists". It seems the new editor of Melbourne's Herald-Sun, Steve Harris, had been a fearless opponent of Kennett's when Harris edited The Sunday Age. At a ``Cabinet lunch" for Rupert Murdoch which included Harris why, by the way, would the Victorian Cabinet be inviting either to lunch? Kennett pointedly welcomed Murdoch with: ``So, Rupert, how's your mother?"

Downward rise

INTERNET and newly-listed company Reckon issued a press release on its latest results in which it carefully manages to not even mention or hint at the fact that it is making a loss. It was ``pleased" with the ``results", revenue ``increased 27.7 per cent", a new product ``exceeded customer acquisition expectations" and ``the company is very clearly focused". Yet its prospectus said it would lose money for two years. It added: ``We remain comfortable with the projected earnings as per our prospectus."

Take note

THE latest issue of the ``mail industry's" mag Major Mail Users devotes its front cover to the pressing question: What is a letter? At least it knows its priorities.

© 1999 Sun Herald

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