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SOVEREIGN PULL OUT |
Views on life as seen through the eyes of David
Kupler at…
KUPKAKE’S KORNER |
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WALLY THE WARDEN
So they're giving wardens the power to fine you on the spot,
they'll pay 'em by the hour and that won't be a lot!
It's one thing to give a ticket to a parked car on the street, but
beware there'll be some rickets
'cos wardens don't think on their feet!
Do not go into box junctions Or make banned right turns, or jump
lights - for Wally’s brains don't function whether morning noon or
night.
They'll be there with notebooks ready in their nazi uniforms,
backed up with faceless bureaucrats who were cloned but never born.
No appeal will be considered no discretion will be used, you're
guilty if they say so… power to be abused.
What happened to the copper
who understood your plight,
as you tried to earn your crust morning noon and night?
Perhaps the police will concentrate on catching crooks and thieves,
whilst we suffer the slings and arrows of these freedom-hating creeps…
Kopywrite Kupkake 2004 |
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Sovereign MD Peter Brooks.
After eighteen months of sitting on the ball, Sovereign Capital, the
company that wanted to buy Dial-a-Cab for £11.4million, has pulled out over
the costs involved in informing members prior to a vote.
According to Sovereign MD Peter Brooks, Sovereign would only be
prepared to go ahead if the DaC Board give subscribers more information and
endorse the bid.
"Not to give them a choice over the value release proposals or to
make a recommendation (given the price) does not make sense to us and
denies the membership fair choice," he says in a letter to DaC Chairman
Brian Rice.
Mr Brooks goes on to add that DaC should also underpin the costs –
estimated at around £175,000 – "at least in part."
Commenting to Call Sign, Brian Rice said that he felt that
Sovereign Capital should be liable for all the substantial costs involved.
"We’ve been down this road before," said Brian, "when DaC
offered subscribers the option of becoming a plc in 1997. The costs
surrounding that could have been substantial had we not negotiated a deal
which made us liable only if the plc venture went through."
Brian then went on to add: "Being involved in a deal such as
the one which Sovereign are offering was always going to be expensive and
that is why we told Sovereign from the beginning that DaC were happy to go
along the road of offering the deal to our subscribers, but that we were
not prepared to pay the substantial costs involved."
Brian concluded: "Sovereign have behaved impeccably throughout,
however, we are going to have to disagree over the costs…"
Peter Brooks
letter is republished in full below…
Dear Brian
At our last meeting I said I would let you know within ten days of |
Sovereign's
deliberations on the
demutualisation of Dial-a-Cab and the
equity (value) release proposals for your members.
An outline indicative offer valuing Dial-a-Cab at £11.4m was put to
the Dial-a-Cab membership some eighteen months ago and since that time the
taxi market has been tough - corporate, legal, accountancy, investment
banking and private equity work has all been down. As a result, instead of
reducing the offer price to members which we considered, Sovereign have
waited to Judge when a recovery may emerge, this is now beginning to happen
and we can reaffirm the price. Sovereign are therefore happy to pursue the
bid at the stated price but with two caveats.
1. We believe giving the members a choice over liquidity in
their shares should be endorsed by the board, a postal straw poll has
already been taken and over 70% of members indicated they would like more
information. Not to give them a choice over the value release proposals or
to make a recommendation (given the price) does not make sense to us and
denies the membership fair choice.
2. Given the lack of support of the board, we think the bid is
unlikely to succeed and if costs of undertaking the bid are also factored
in (estimate of approximately £175,000), it would be wrong of us to incur
these costs. We would expect them to be at least in part underpinned by the
company as is common with transactions of this nature. It is to the
members' benefit (capital gain) either now or in the future if the scheme
were to be accepted.
Sovereign therefore, unless the two above points can be agreed,
(and I understand they cannot) would take an unacceptable level of risk
and, therefore, withdraw.
Dial-a-Cab is a good company and a brand leader in London. We, as
you know have become a customer. You are well positioned under your
chairmanship's governance to progress forward in several directions.
Sovereign have enjoyed working with you over the last eighteen months and
wish you and the company well in what is a competitive, changing market. We
hope you prosper.
Yours sincerely
Peter Brooks
Managing Director
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