Well it look like Sask Pool is convinced change is coming

[Incognito]

Agstar:

What is your definition of controlling interest?

[carebear300]

No matter how much things change, some things stay the same. SWP hasn't changed over the years. They always had this idea that the only way to gain market share was to buy out or eliminate the competition. They were never able to gain more market share by actually competing, offering higher prices than the competition or giving better service than their competitors. As per usual this move will not benefit farmers it will cost us mega bucks in the long run.

[chaffmeister]

I guess it must be interesting to talk about at the SWP board table but I can assure you - this ain't gonna happen.

SWP and AU combined have about 48% of the handling/shipping capacity in the country, about 77% of west coast terminal capacity and 61% of Thunder Bay terminal capacity; if they were to merge there would be only 3 terminal operators left in Vancouver - SWP/AU, Cgl, JRI - plus the potential of another if the UGG terminal is ever sold and operated.

I can't imagine a scenario where the Competition Bureau would allow this to go ahead without major divestments (which takes away the reason to combine assets in the first place).

[AdamSmith]

Is it just me or is this a really short sighted response to the change that is coming? Wouldn't a major investment in processing be a more logical move?

Or are the boys around the Sask Pool no different than the CWB Board of Directors, they both suffer from an embarrassing case Cargill envey.

[chaffmeister]

Wasn't it delusions of grandeur what got them into financial troubles before?

- Grain terminal in Gdansk, Poland
- Grain terminal in Manzanillo, Mexico
- Robin's donuts
- "Cadillac" high throughput elevators that needed to turn 12 times to payback (industry average = 6 times)
- Don Loewen saying he wanted SWP to become as big as ConAgra

[agstar77]

AS ,CWB directors are no different from SWP, remeber Bruce Johnson?

[jensend]

just talked to somebody who watches as things develop and this is either conagra or chinese money and may be coming out of china as they anticipate the end of the cwb. reminds me of when nilsson's bought heartland livestock out here and everybody thought it would be good for the cattle industry but turned out they just came to **** and pillage like the other auction and packer guys.

[wedino]

Would it be so bad if they had to divest of port terminals? Chance for inland terminals to pick up a port terminal or maybe cwb2. Market likes SWP announcement, up $.28 so far today.

[AdamSmith]

Agricore shares rise 21 per cent after Pool makes takeover bid
November 8, 2006 - 11:51 a.m.
REGINA (CP) - Shares in grain handler Agricore United (TSX:AU) shot up 21 per cent Wednesday morning, a day after rival Saskatchewan Wheat Pool Inc. (TSX:SWP) made a hostile takeover bid that would create a combined business worth more than $1.2 billion.

Agricore stock advanced $1.73 to $9.97 with 926,603 shares changing hands in early trading. Pool stock edged down two cents to $6.89.

THE WAY I READ IT THE MARKET ISN'T TO IMPRESSED WITH THE OFFER BY POOL, IT HAS ALREADY VALUED AGRICORE SHARES ABOVE THE POOLS OFFER AND DROPED POOL SHARES.

I KEEP ASKING MYSELF WHY? WHY NOW? WHY AT ALL? IS THE POOL AFRAID TO COMPETE?
DO THEY KNOW THAT HANDLING REVENUE PER TONNE IS GOING TO DROP BIG TIME SO THEY WANT TO MAKE IT UP ON VOLUME? IT JUST SEEM LIKE THEY FELT THEIR GOING TO LOSE ANYWAY SO LETS THROW A HAIL MARY AND HOPE ITS CAUGHT!

ND ELEVATORS BUY GRAIN FOR 7 CENTS/BUSHEL IN THE DOOR AND 7 CENTS/BUSHEL OUT THE DOOR! THATS 1/3 WHAT OUR SYSTEM CHARGES

[jensend]

so is au buying back shares in self defence?