David Benton wrote:http://www.nzherald.co.nz/index.cfm?c_i ... D=10329487
Seems the light at the end of the tunnel , as far as profitablity , is as far away as ever . i'm glad i resisted the urge to buy shares , when i first saw the glowing plans Euro Tunnel had prior to construction .
A year ago in April 2004 a group of French shareholders, egged on by a convicted (fraud) share tipster and extreme rightwing politician Nicholas Miguet kicked out the Anglo-French Board and put in those who had promised to increase the share price and solve the problems by repudiating the debt. I voted against these but there are now few British shareholders. The Board is now wholly French and has had several comings and goings in the last year. The prsent chairman still maintains that the creditors should write off the debt. This is a silly Gallic dream. It is clear that their real intention was to apply to the French government for a subsidy, as with every large French company. But Eurotunnel is not a French company. It is bi-national and established by an International Treaty, which explicitly states that neiher government is allowed to subsidise it. The previous bi-national Board (which was highly respected and competent) was trying to get round this provision by various means, and was buying back the debt at a discount. The current all-French Board has abandoned these procedings and the end result will be worse for the existing shareholders as dilution is the only possble solution.
There is a serious danger that the previously mentioned rightwing politician may again stage a coup this year and put in an even more extreme Board. If he himself is elected to the Board the banks will probably substitute - that is put in their own managers. The situation is insane.
I shall be going to the AGM on 17 June in Calais. I have a lift from another shareholder so we will go through on my pass, thus saving £39 at the present day return rate.
The problem is that competition with the ferries has driven the price down to a point where no-one is making any money - similar to the worldwide situation of airlines.