In today's Namibian paper...
LINK: http://www.namibian.com.na/news/full-story/archive/2011/november/article/namdeb-happy-to-have-anglo-on-board/
If even the MD was surprised at the Oppenheimers decision to sell, then I almost smell a rat. But then again I don't think that Anglo would buy a sinking ship. Just makes you think.
Quote from: Andrew Darné on November 10, 2011, 08:36:42 PM
If even the MD was surprised at the Oppenheimers decision to sell, then I almost smell a rat. But then again I don't think that Anglo would buy a sinking ship. Just makes you think.
They buy the whole ship then get rid of the parts they don't like later... cat1.gif
I'm Surprised that the MD was surprised, anyone following mining/market trends, would have read over the last 12 months that one or two things with DeBeers was going to happen, Either Anglo was going to sell out of the diamond industry and focus on it's core operations or as all the analysts have been punting for the last 12 months, Anglo was going to buy the Oppenheimers out....
Just my Friday morning 2 cents....
msn emoticon (9)
I think Anglo wants De Beers to remain as a global force in diamonds. The emerging markets have created renewed demand for diamonds and the 40% buy of De Beers to release the Oppenheimers huge stake in DB gives the Anglo/De Beers partnership refreshed freedom to tap into these markets and expand market share.
Anglo have always been part of the De Beers business. Harry was chairman of both at one stage in recent history. Perhaps the Oppenheimer family could exert extreme influence on new projects. Maybe it was a case of too negative an influence too often? Having the family holding back DB's freedom to act and implement projects might have been the deciding factor to sell to AA. Or perhaps Nicky wanted to just play cricket and have the financial cushion to carry on doing so..........?!
Or maybe he saw the wisdom in divesting the family's shareholding to permit AA to keep the Russians from grabbing most of the lucrative EM demand?
To do so typically required a lot of freedom to act quickly to whatever the prevailing circumstances demand. DB and AA were 'joined' at the hip and I am guessing that this purchase of the 40% DB holding will free up any potential Oppenheimer conservatism that might restrict AA/DB in the future.
They are now free as a bird to do as they wish to capture maket share in the emerging markets of China & India.
Besides, who else could the Oppenheimers rightly sell their investment to? History dictated that it be Anglo.