MD writes...

Whilst seasoned City types know the truth (apparently), the average punter regards the financial pages as a generally unbiased view on all things in the world of business and commerce. Subject, of course, to the paper's editorial slant.

However, this writer's ire was raised somewhat last week when the Daily Telegraph did a particularly sloppy piece (05/08/05) on GKN plc's recent results. Unfortunately, the article is evidence (if proof were needed) that the financial pages are frequently simple mouthpieces for the investment banks. Real news analysis struggles to get a look in.

I quote from the "Questor" column edited, if that's the right word, by Philip Aldrick.

"GKN is the market leader in...The management has proved highly
competent..."

and then he completely lets himself down with:
"...but its operations would sit more comfortably with a major US parts supplier like Delphi or Visteon."
My gast was flabbered, my gob was smacked! Who writes this nonsense? (Editor: you do).

Has it not escaped his notice that Visteon is to all intents and purposes bust and Delphi close behind, not to say many other US parts suppliers? Why would this be better for the company? Would it increase revenues? No - arguably they would decline as manufacturers demanded bigger discounts as part of a bigger group. Would innovation increase? I doubt it, not much left cash you see after a purchase.

And, oh, by the way UK Plc would lose out as R&D shifted, dividends flowed the other way, the balance sheet became more highly geared and the tax take dropped. Still, you know this makes sense...it would provide fat fees for the deal driven "advisors" in the City.

We, and the Telegraph, deserve better than this nonsense.

Bookmark and Share

0 comments

Related Posts with Thumbnails