Chris Cooper, former chairman of Redflex Traffic Systems didn’t mince words when talking about the rejection of a $305 Million bid from The Carlyle Group and Macquarie Bank to buy the company, which had been raised to $2.75/share on Friday.
Redflex doesn’t seem to understand the art of negotiation. They recently rejected an offer from Toll Road Operator Macquarie to buy their company for more than it’s actually worth, hoping to spark a bidding war. That part was laughable enough, but after releasing their Fiscal Year 2010 (FY2010) earnings report, you’ve got to wonder what they’re putting in the vegemite at Redflex HQ.
Profit is down 92% according to their own report. Let’s get this straight. NOW Redflex execs think companies will be lining up to buy them for much more than they are worth? That makes about as much sense as a screen door in a submarine.
We know water swirls the other way in the land down under, but the last we heard, money still goes in the same direction.
At this point it’s becoming clear what needs to happen. The first would be drug testing for the Redflex brass, of course. But secondly it seems so much damage has been done to this scam peddler with bad press that it’s our duty to auction them off to the public, one scrap metal birdhouse and video camera at a time.
Do we have an opening bid on the soon-to-be decommissioned scameras at McDonald and Tatum?