House of Ccommons Dec 2, 2014 CWB

[bucket]

When discussing this with some close to the attempted deal and industry players, the deal is the money they bid is left in the cwb . So effectively they don't pay for it.

So if fna bid was accepted and they bid 200 million the company they just bought would have 200 million in the bank.

They finish their building plan and sell it for 500 million. They just made 700 million on a quick flip.

Zero dollars at risk.

[bucket]

In reality Ritz could wait for the 200 farmers that cheerlead him (wcwga)to put forward a bid and they could make a tonne of money as their payback for supporting and advising ritz for so long.

Then ritz could get a board seat.


I would be laughing but in reality in this country it could happen.

[farmaholic]

I find that hard to believe and would hardly be legal to "gift" like that. So in essence, you paid yourself to buy a grain company.

I wonder if I could buy some of that land that the Government bought from Assiniboia Land Company on those terms??

[bucket]

In other terms the government is buying the new owner the admission fee to the graincos tea club.

and if you go back to who was on graincos boards it's not hard to figure who is the frontrunner.

[grassfarmer]

It's the Alberta way farmaholic, and we have an "AB" government in Ottawa. Subsidized corporatism not free enterprise.
As an example we have a power company whose assets and infrastructure are all bought and paid for by the taxpayer yet the company is guaranteed a 7% (or is it 9% I forget?) return on the investment they didn't make.
No wonder Warren Buffet is buying the company.

[bucket]

Yes farmaholic that's exactly what it is Ritz is paying the owner to take it.


It's is worth something. At least the billion in guarantees.

[dave4441]

But the guarantees will evaporate once the sale is made. Without the govt guarantees what value does the CWB really have? Ya they have some customers in certain countries but it's not like a adm or Bunge doesn't already know those customers and is already selling to them everyday. We don't know what debt is present from purchases of assets and construction either.

I hadn't grown durum for so many years before the cab fell that I don't feel I am owed anything. I also hope they are able to create a competitor. That will give me more value then the tiny ownership I would be due.

[farmaholic]

Yes Dave at the very least a "NEW" competitor. Not some shell company that after 2 years sells to an already existing Giant and makes a small fortune on the flip. Then the, here's a good one, "competition bureau" can step in and re-jig the delivery points so no one Company has too much concentrated market power in one area. Then when that is done, the players can get back to their games.... ****ing cynical eh!!

[bucket]

That's right those family owned grain companies don't make money. Cargill have made so much money they don't have to go public to get money they buy public companies and make them privately held.

Richardson paterson parish heimbecker all look like they are struggling as well.

Yep it will be a tough row to hoe for the cwb. Not likely with key facilities and support from those that sold to them. Plus they will likely continue to enjoy the margins the others have as well.