It will be a few more weeks before Carlton legend Mike Fitzpatrick hangs up his boots as AFL chairman, but he doesn't need to worry about things getting a little boring following his departure from the big game.
The Fitzpatrick-chaired boutique investment disaster, Pacific Current Group (PAC), shows no signs of making peace with its investors who walloped it last year with an 84 per cent vote against its remuneration report.
More BusinessDay Videos
Rates on hold for foreseeable future
The Reserve Bank leaves the cash rate at 1.5 per cent - and Peter Martin says interest rates are not about to change anytime soon.
Just before Christmas, it offered an olive branch with a promise to simplify the frankenstein structure that had been implemented after its disastrous 2014 merger of PAC – then known as Treasury Group – with Northern Lights Capital Group.
"The proposed simplification transactions have been developed in response to feedback from shareholders that PAC's corporate structure is too complex and is a distraction," said Fitzpatrick in the chairman's letter to investors.
![Pacific Current Group chairman Mike Fitzpatrick.](/web/20170310193300im_/http://www.smh.com.au/content/dam/images/g/t/g/4/m/1/image.related.articleLeadwide.620x349.gusa3s.png/1488902286958.jpg)
The problem was that they created a separate structure – the Aurora Trust – to house the assets with the various partners holding stakes in the trust. PAC's 65 per cent stake is pretty much its entire business.
Last month it announced details of the restructure, as well as an extraordinary general meeting to be held next week so investors can approve the deal. PAC would take ownership of the entire trust, and its partners would receive stakes in PAC.
But some investors still aren't happy.
On Monday a group of disgruntled shareholders banded together and announced they were acting in concert to contest the proposed restructure – and ensure the people who presided over the initial merger are held to account.
![Domino's top pizza boy Don Meij.](/web/20170310193300im_/http://www.smh.com.au/content/dam/images/g/u/e/v/l/9/image.related.articleLeadwide.620x349.gusa3s.png/1488902286958.jpg)
"Since the highly questionable merger, some $200 million has been wiped off Pacific Current Group's market value, in just over two years," said the announcement from the rebel investor's leader, Michael de Tocqueville.
"The shareholders have decided to come together because of their concerns relating to the poor corporate governance and risk-management practices of their company, and also with the restructuring and simplification proposals."
![CBA boss Ian Narev.](/web/20170310193300im_/http://www.smh.com.au/content/dam/images/g/u/s/5/l/z/image.related.articleLeadwide.620x349.gusa3s.png/1488902286958.jpg)
Maybe Fitzpatrick should have hung up his boots at PAC instead.
Domino theory
It must be the most exclusive investor briefing ever given by a major ASX-listed company.
![Illustration: John Shakespeare](/web/20170310193300im_/http://www.smh.com.au/content/dam/images/g/u/s/q/r/a/image.related.articleLeadNarrow.300x0.gusa3s.png/1488902286958.jpg)
Don Meij's Domino's Pizza held a catch-up with institutional investors on Tuesday – as well as any analysts who did not get invited along to Treasury Wine's Napa Valley tour to check out the new digs for its CEO, Michael Clarke.
Domino's did not invite the press to make up the numbers at the gathering.
And was the company planning to publicly release any of the presentations? Alas, no.
Which is a pity because CBD heard that the main point of the briefing was to get a number of franchisees in front of major investors and analysts to calm any market jitters about Fairfax Media reports detailing worker exploitation and visa fraud in the franchise network.
Stock broken
The good news is that the glitch affecting the ASX website did not extend to its trading platform.
Investors could trade to their hearts content on Tuesday so long as they did not mind the fact that the exchange operator could not disseminate any company announcements – which might come in handy for those trading.
"We are experiencing intermittent issues with the public website," it eventually posted on its website around lunch time.
"The market is operating normally. Data and market announcements are available. Please check with your broker or use an alternative news source. We are working to resolve the website issue as soon as possible."
Being a thoroughly modern operator, the ASX even tweeted about the issue.
Hi @Ross_Greenwood @9NewsAUS yes intermittent issues with the website. No impact on market operations. Apologies, we are working to fix asap
— ASX (@ASX) March 7, 2017
Royal response
The highlight of Tuesday's bank-trashing fest in Canberra would have to be Ian Narev's answer to whether we need a royal commission into the sector.
"The message that the convening of a royal commission would send about policymakers over the last decade, regulators over the last decade, bank management and governments over the past decade would not be positive for the industry, would not be positive for strength, and would not be positive for the perception of our industry as unquestionably strong," said the Commonwealth Bank boss.
"We believe that would be very damaging to the industry."
Does that mean the industry is too important to be subject to a royal commission if it deserves one?
Labor MP Matt Thistlethwaite was not impressed.
"You guys have done a pretty good job of destroying confidence in the banking industry over the past decade, haven't you?" he said.
Follow CBD on Twitter. Got a tip? ckruger@fairfaxmedia.com.au
0 comments
New User? Sign up