Power Plays And Powwows

Sydney Morning Herald

Saturday November 13, 2004

James Bone

James Bone and company decide the best tactic is a retreat to honour real valour.

Monday, November 8

We sat in a circle deliberating over two titanic shareholder battles: Liberty Media's hinted designs on News Corp, made palpably real by its CEO, John Malone, almost doubling his stake in News Corp to 17 per cent; and Peoplesoft's brave rejection of an enhanced $US9.2 billion ($12 billion) bid from Oracle.

"Right, so let's see," said Doomsday, our bear-market analyst. "We own 0. 3 per cent of News and 0. 25 per cent of PeopleSoft, which means ..."

"Every vote counts!" said Yogi, our senior chartist, in a rather sad echo of John Edwards, John Kerry's deputy.

The Phantom Day Traders went into their usual huddle to try to make sense of the deals.

Sometimes these huddles are drawn out for days. And sometimes these earnest deliberations are broken by cries of "Don't panic!" or "Hold all scenarios!"

Tuesday, November 9

This morning, we were holding all scenarios, locked in debate. All night the struggle of the media titans had possessed us.

"I say the cable cowboy [as the Denver-based Malone is known] is just a large, happy friendly shareholder. He means no harm," murmured Yogi.

"Why then," said FastCash, "has Rupert Murdoch announced this poison pill? And what should we do about it? Er, swallow it?"

It was true that News's boss has said that if anyone took more than 15 per cent off him he would offer cheap shares to other investors to head off a hostile bid.

"I reckon Malone just wants to do deals with Rupert," said Bluesky, our freelance stockbroker.

Others were not so sure.

"Nope. I reckon it's gonna develop into the biggest media takeover struggle in history," said Doomsday. Could he have an inside track to the head honchos? Has he been speaking to too many taxi drivers?

Wednesday, November 10

"Yasser Arafat's not dead yet!" said Yogi suddenly. It was his third comment this morning on the Palestinian leader's health.

"Thank you for that Yogi. Most useful," said FastCash, scarcely disguising his irritation.

The rest of us were, er, heads down, bums up still studying News, Liberty, Oracle and Peoplesoft.

Bluesky was droning on about Oracle's chances of taking control of Peoplesoft. "I reckon Oracle is finally ready to throw in the towel if Peoplesoft shareholders don't respond by November 19 to his latest offer. Larry Ellison, the bloke who runs Oracle, said the other day that the company may look for other targets."

"Yes," said FastCash. "I hear [software designer] BEA has been mentioned as a particularly attractive candidate. Waddya reckon? Should we buy it?"

"Yasser Arafat's not dead yet," interrupted Yogi, looking up from his share chart. He seemed to be divining the future state of Arafat's health from the graph of the Nasdaq. The connection eluded the rest of us.

Thursday, November 11

We awoke, and prepared for our annual trip to the local RSL, to commemorate the fallen diggers.

Being rather desk-bound day traders, we rarely get out, so today we emerged from our work stations to the glare of daylight like a species of nocturnal animal, or perhaps newly released prisoners.

I don't think Doomsday's seen the light of day since last year's ceremony, and he remarked on how the city's changed, and the trees have grown etc.

"Yasser Arafat's not dead yet," murmured Yogi.

Grace, my long-suffering wife, was having trouble attaching her poppy. It didn't really matter, because her dress had a poppy pattern, and one more poppy didn't really add to the effect.

In fact, the attachment of the poppy has become a longstanding ritual with the day traders: none of us seems capable of getting it right.

Finally we were ready.

The RSL was fairly full, with lots of veterans, and us. Each year the old diggers tend to stare in amazement at our little party, which I must admit cuts a rather incongruous presence: FastCash's dreadlocks, Yogi's fez, and Doomsday's sad, goatee-bearded, chronically unemployed expression do not somehow elicit the idea of deep reverence for our war dead. But looks can deceive.

They shall grow not old, as we that are left grow old;

Age shall not weary them, nor the years condemn.

At the going down of the sun and in the morning

We will remember them.

The Ode moves us all.Later we repaired to FastCash's place for our usual binge drink, in celebration of the freedoms for which the diggers fought and died. It was in the spirit of a wake, I suppose, blemished somewhat by Yogi's comment, at the going down of the sun: "Er, Yasser Arafat's dead."

Friday, November 12

We resumed our part in the mega-takeover battles that seemed to be looming in the US.

"Though Malone cannot do very much with 17 per cent, he is betting that Murdoch will now do deals that he would normally reject just to see the back of him - that's what The Economist reckons, anyway," said FastCash.

"The bottom line is: Does Mr Malone harbour an ambition to run News Corp?" I asked.

Blank looks, general silence, met my question.

"No one knows, Bone, except the cable cowboy himself," said FastCash.

© 2004 Sydney Morning Herald

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