Re: What is freightcorp worth?

[david <david@gwmail.nmit.vic.edu.au>]

avachat wrote:

> Maurie Daly <mauried@tpg.com.au> wrote in message
> 39e3ded7.15719465@can-news.tpg.com.au">news:39e3ded7.15719465@can-news.tpg.com.au...
> > Seems that the NSW Govt thinks that Freightcorp is worth $1B.
> > This is a bit less than the $7B that the WA opposition thinks that
> > Westrail is worth.
> >
> > Seriously,just where do the pollies get these numbers from??
> > If Freightcorp is worth $1B , it should be making annual profits of at
> > least $100 M , preferably closer to the $200 M mark.
> > AFAIK , last year Freightcorp only made around $40 M , which included
> > NSW Govt CSO subsidies.
> > Even with $40 M , this represents only a 4% return on capital, which
> > is pretty lousy.
> >
> >
> > If Freightcorp is worth $1B than what is NRC worth ???
> >
> > MD
> >
>
> It has been quoted at $AU500. mil.
> A company such as NR or FC are only worth what the market is prepared to pay
> for them.
> The NSW GOV is pressuring the Feds ( Fahey ) to agree to a joint sale i.e.
> FC and NR as a package deal.
> Even Fahey would realise the potential for a higher sale price for NR this
> way than selling
> NR alone. This would also realise a close to $AU1. Bil sale receipt for FC
> as one will complement the other.

Will the other "partner" in NR wish to have FC tagged into the price ?

David Head