Langbar International

Esrimeur - 21 Oct'05 - 22:29 - 22291 of 22462

So little understanding. I seem to have to repeat myself in various ways to get the following through:

The DR is a tradeable security with a market value (if any) determined by the market. ABN Amro are hoping to make that market. They will not be giving any cash to LGB, as r33 imagines. It is decidedly not, as r33 claims "A voucher for $294 million". ABN hope to sell it in the capacity of a MM. That is why they have insisted that it be admitted to the pseudo-exchange run by The Depository Trust Co in the US ("the DTCC platform*)

You are all going to find that, not only is the true NAV of LGB severely affected by the lack of marketability of a DR whose underlyer is a 2009 term deposit in an unstable country with severe exchange controls, but also that LGB's latest accounts are no guide to future "investment income", if indeed they are correct as to that item for the period covered.

IMHO, the "verification" RNS has nothing whatever to do with anything other than that either or both:

a) ABN Amro will not complete clearing on Euroclear. Pearson said due by 31
Oct - obviously now totally impossible. The financials and delivery criteria
clearly cannot be met during 2005. So - no clearing = no settlement = not
even a market for many months.

b) The interim accounts fail to recognise the severe impairment of ALL of the
term deposits held in BoB which are apparent from the foregoing. The forced
purchase which is necessary to release the remainder of the BoB deposits
necessitates a vast discount to their stated worth.

REMEMBER - THESE ARE HISTORICAL COST ACCOUNTS - drawn up to a date preceding all the recent RNSs . No Post-balance sheet events disclosed. ALL BRAZILIAN DEPOSITS DESCRIBED AS INVESTMENTS.

Cute accounting ( I specialise) but highly unlikely to be fraud. Just piss-taking. And institutions fall for it on a daily basis.

**********

You claim "no post balance sheet events disclosed".

That would be why it says in the interim results announcement:

Post Balance Sheet events:

•Total of £4.1 million raised via Placings

•$294 million transferred to ABN Amro, Holland from Banco do Brazil,
Brazil

•Acquisition of Real Affinity plc, an integrated marketing services
company for a consideration of £2.6 million, wholly satisfied by the issue
of common shares

•Balance of cash held in Brazil to be transferred to EPIC, the property
subsidiary

You also say, "underlyer is a 2009 term deposit in an unstable country with severe exchange controls".

So the most dramatic part of your argument is that the statement in the results announcement RNS "$294 million transferred to ABN Amro, Holland from Banco do Brazil, Brazil" was a lie.

I wonder why you chose not to headline this assumption?