Bluefreeway today extended their suspension from trading while investigations continue internally. Simon Chen does a decent breakdown of the situation in his own inimitable style.
I really feel sorry for all those local companies who did a 50/50 deal for cash and stock when the fast talking Bluefreeway guys came along. There’s not one who wouldn’t be regretting their decision to sell.
Because if the core group goes pear shaped when they do finally make an announcement to the market, each and every company won’t be able to do anything. Potential buyers of the carcass (or carcasses) will be negotiating with someone from Ferrier Hodgson rather than the founders of the individual brands.
I read a great piece recently which I’ll try to dig up on matching your development cycle with your sales cycle to make sure one doesn’t sink the other. 20/20 hindsight for Bluefreeway, hopefully it will serve as a lesson to others. For those interested in the history of the “train wreck”…