RE: Background on Accudo26 Jul 2018 16:47
"royalties are standard costs and built in."
So is rent, and House of Fraser isn't shy to negotiate with their landlords to cut it.
TESCO was very happy not paying their suppliers, stalling as long as they can.
Many years ago, a Goldman Sachs executive was posted to London, and he rented a flat in Notting Hill, paid for by Goldman Sachs. When the Letting Agent and the Landlord asked for a deposit, the GS people (HR or Legal, who knows) said, "We are Gold Sachs, you can trust us.", and the landlord agreed to NO DEPOSIT.
A year later, or two, the tenant relocated to Holland, and the landlord found the flat was totally trashed. Not just dirty, but destroyed. Lets assume that the tenant dumped a girl friend or something, and will get a new one in Holland, so the dumpee got mad. Anyway, the landlord asked GS to pay compensation, and they said : "We are Goldman Sachs, we have an army of lawyers. Sue us."
Lets just say the repair and refurbishment was a lot more than the rent, which he did get; but not the compensation.
Incidentally, the company can pay rent up to three years, and it's just a company business expense, but after that, the rent is considered taxable income of the employee. I had one who stayed for three years, in London, on company expense, and then went back to Switzerland. Easy to commute by plane anyway.
"The privately-held company is funded by sophisticated investors and clients of BlueMount Capital, a national mid-tier Australian investment bank. BlueMount Capital specialises in corporate finance, including IPO, M&A, MBO and cross border transactions (www.bluemountcapital.com)."
"Private Equity" is a dirty word, and they are very careful not to use it, but what else is a "special purpose vehicle" "held privately" ?
When I read "IPO, M&A, MBO", I see lawyers and accountants. I don't think we are paying for them, so they are acting for somebody else. Screvv everybody else R'Us, that's private equity for you.
https://www.bloomberg.com/news/articles/2018-01-25/congo-raises-cobalt-copper-taxes-amid-opposition-from-miners
"Copper royalty rises to 3.5% from 2%; Cobalt may rise further"
"The code would also permit Congo, the world’s biggest source of cobalt, to raise the royalty on that metal to 5 percent if the government opts to categorize the mineral as a “strategic substance.”
Now if Accudo rings up Martin Rosser and say, Joseph Kabila is getting greedy,
AXM has to take a cut too, or we are going to pull out, what should Martin do?
There is no getting away from accountants and lawyers, I just get nervous when they are looking after somebody else's interest.
Sign In
Follow the stocks
