Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: SEC-ond-chance who wrote (83013)	1/20/2003 9:27:18 AM
From: StockDung	Respond to of 122087

RAY DIRKS NEW TEL COMICS-> Deloitte chief quits 20jan03 DELOITTE Touche Tohmatsu chief executive Domenic Martino has quit his post, amid controversy surrounding his previous involvement with the failed junior telco, New Tel. Mr Martino, who took on Deloitte's top job in May 2001, has been dogged by controversy surrounding his position as a director of New Tel and whether it was trading while insolvent before he resigned last year. Deloitte has temporarily returned Mr Martino's predecessor and chairman Lynn Odland to the chief executive's post while it searches for a permanent replacement. The chairman's job will be filled by Harley McHutchison. In a statement, Deloitte said Mr Martino, who was also chairman of Sydney Gas Ltd, was leaving to "consider his future". "He cited as reasons for his decision to resign - the ongoing publicity associated with his past directorship of New Tel and his belief that it was good corporate governance and in the best interests of Deloitte and its people for him to step aside while New Tel's affairs were investigated during liquidation, a process that could take many years," Deloitte said. Mr Martino believed any future investigation of New Tel would show he "properly fulfilled his duties as a director" until he resigned in February 2002, 11 months before the telco went into liquidation, the company added. In another twist, Deloitte has banned its partners and staff from holding directorships in public companies and, with limited exceptions, in proprietary firms. The change is expected to affect about half a dozen of the company's staff. "While holding directorships has been accepted practice in Australia for many years by legal, accounting and management consultants, Deloitte believes changing market attitudes towards corporate governance and our own commitment to best practice in governance globally, dictates a change in policy," Mr Odland said. Last Monday, New Tel's creditors voted to place the Perth company into liquidation amid concerns it was possibly trading insolvent for more than 12 months. New Tel owes $40 million to $50 million to employees and creditors - including Optus, which appointed PricewaterhouseCoopers (PwC) as administrator in December. New Tel shares were suspended from trading in October after it failed to lodge its audited annual accounts. heraldsun.news.com.au

To: SEC-ond-chance who wrote (83013)	1/20/2003 9:30:37 AM
From: StockDung	Respond to of 122087

TRUTHSEEKERS BRING DELOITTE CEO TO HIS KNEES->Deloitte CEO steps down amid New Tel investigation Sydney January 20 2003 Professional services group Deloitte Touche Tohmatsu today said its chief executive Domenic Martino had resigned, partly because of publicity surrounding his former directorship of junior telco New Tel. Deloitte said Mr Martino would be replaced by Lynn Odland, who had been chairman of the company since May 2001. Mr Odland previously served as the company's chief executive between 1997 and 2001. Deputy chairman Harley McHutchison has been appointed chairman. "Mr Martino will take leave to consider his future," Deloitte said in a statement. "He cited as reasons for his decision to resign - the ongoing publicity associated with his past directorship of New Tel and his belief that it was good corporate governance and in the best interests of Deloitte and its people for him to step aside while New Tel's affairs were investigated during liquidation, a process that could take many years." Deloitte added Mr Martino believed any future investigation of New Tel would show he "properly fulfilled his duties as a director" until he resigned in February 2002, 11 months before the telco went into liquidation. Mr Odland also revealed Deloitte would no longer allow its partners and employees to hold directorships in public companies and with limited exceptions in proprietary firms. "While holding directorships has been accepted practice in Australia for many years by legal, accounting and management consultants, Deloitte believes changing market attitudes towards corporate governance and our own commitment to best practice in governance globally, dictates a change in policy," Mr Odland said. Mr Odland is expected to remain as chief executive for the next six months while the company searches for a replacement for Mr Martino. AAP

To: SEC-ond-chance who wrote (83013)	1/20/2003 9:35:11 AM
From: StockDung	Respond to of 122087

New Tel claims scalp of Deloitte's head honcho By Geoff Elliott January 21, 2003 THE collapse of junior telco New Tel claimed 250 jobs around Australia but none has been more significant than yesterday's resignation of Domenic Martino as chief executive of one of Australia's largest accounting firms. Mr Martino quit as CEO of Deloitte Touche Tohmatsu, after less than two years at the helm, as pressure built following a series of damaging revelations about his role at New Tel and other business ventures. Over the past two months, The Australian has charted New Tel's fall, including revelations that Mr Martino was still acting on behalf of New Tel chief executive Peter Malone to help try to rescue the company and avoid the appointment of the liquidator. Serious questions have emerged about the whereabouts of more than $100 million New Tel shareholders raised in 1999 and 2000, a period during which Mr Martino was a director. Industry figures privately queried Mr Martino's judgment in an era of increased focus on corporate governance. Deloitte chairman and acting CEO Lynn Odland said Mr Martino "felt it was in the best interests of everybody if he resigned from the firm". Deloitte was in damage control yesterday, announcing a policy to ban its partners from acting as directors on the boards of publicly listed companies – at the heart of the controversy of Mr Martino's tenure at Deloitte. Mr Odland said: "Its just not good practice to have your partners on (publicly listed) boards." Mr Martino's directorships included one at online lingerie company No Regrets, which ran into problems with the Australian Securities and Investments Commission. And he is chairman of junior energy company Sydney Gas – but is expected to resign. Mr Odland stressed it was Mr Martino's decision and that Deloitte had not asked for his resignation. He said there was no evidence Mr Martino had done anything wrong. Even so, Deloitte accepted his resignation. Mr Martino has not left Deloitte entirely but Mr Odland said it was unlikely he would find another role suitable after having been CEO. Mr Martino will take a period of extended leave. He refused to make any comment, beyond a prepared statement, to The Australian, which colleagues said he felt was responsible for a "vendetta" against him. Mr Martino was a director of New Tel until February 2002, 11 months before liquidator PricewaterhouseCoopers was appointed. But PWC has indicated that New Tel could have traded for more than 12 months while insolvent, leaving Mr Martino open to possible criminal charges. Mr Martino denies the company was insolvent while he was a director and issued a statement yesterday saying "any future investigation of New Tel" will demonstrate that he properly fulfilled his duties as a director".

To: SEC-ond-chance who wrote (83013)	1/20/2003 9:40:43 AM
From: StockDung	Respond to of 122087

NEW TEL->CONTACT: Raymond L. Dirks, or Contributing Analysts, Leo Murphy or Tom Heysek for Security Capital Trading, Inc., 212-339-2000 or 888-305-0050, or fax, 212-339-2015 (NWLL) SECURITY CAPITAL TRADING, INC. INITIATES RESEARCH COVERAGE ON NEW TEL LTD WITH A STRONG BUY RECOMMENDATION PR NEWSWIRE - November 24, 1999 11:42 NEW YORK, Nov 24, 1999 /PRNewswire via COMTEX/ -- The following is being issued by Security Capital Trading, Inc., a member of the National Association of Securities Dealers, CRD Number 35909: New Tel Ltd (NASDAQ Symbol for ADR's: NWLL) Australian Stock Exchange NASDAQ ADR's in Austr. $in US$ in US$ Recent Price A$1.56 US$1.01 $9.625 52 Week High 1.65 1.05 10.00 (11/18/99) 52 Week Low 0.40 0.30 3.00 (9/1/99) Shares Outstg (millions) 90 90 (see note) Market Cap (millions) $140 $90 Note: New Tel is listed on the Australian Stock Exchange under the symbol NWL. The Company's ADR's are listed on NASDAQ under the symbol NWLL. There are 10 shares of New Tel common stock underlying each NASDAQ ADR. Mkt Cap to Earnings Book Value FY Ends Revenues Revenues Per Share P/E Per Share June (MM) 2000 (e) A$ 20 mm 4 times A$ 0.02 70 x A$ 0.20 2001 (e) 50 mm 2 times 0.10 14 x 0.30 2002 (e) 100 mm 1 times 0.20 7 x 0.55 Summary & Investment Conclusion New Tel is one of several telecommunications companies to emerge in the aftermath of that industry's worldwide deregulation. The company is a technology spin-off from a non-telecommunications company (Transcon, symbol: TRIXY) to enable a clearer, unfettered commercial focus upon telecommunications and Internet applications of its proprietary technology. In strategic alliance with China's Xinhua News Agency, New Tel has two primary business segments: (a) providing telecommunications services and equipment to Chinese-speaking people in Australia; and (b) by the end of fiscal 2000 (ending June), ISP/Internet Portal services in China. Xinhua recently announced that New Tel was acquiring 18 websites from the Chinese Government which collectively has 7 million daily users ... including China's Ministry of Foreign Trade website. Usage is projected to increase to 33 million users by 2003. Upon consummation of this transaction, Xinhua will hold a 49% equity interest in New Tel. New Tel has established a recognizable corporate presence in Asian telephony in a relatively brief period of time. Though currently only in two markets, Australia and China, these are two of the fastest growing ... and we expect the Company to become a material factor in both markets within the next 12 months. While we project near breakeven operating results for FY2000, we forecast $0.10 in EPS in FY2001, then doubling again in 2002 to $0.20. With 400 million shares outstanding by the middle of next year, this translates in Net Income of A$40 million (Australian Dollars) in 2001, and A$ 80 million the year after. Our near term target price (6-12 months) of A$2.50 is based on the valuation of comparable companies that have attracted industry attention. Indeed, the recently announced issuance of 200 million shares to acquire 18 Chinese Government-owned websites assigns a valuation to New Tel stock at A$2.00 per share. Longer term (12 months +), we believe New Tel has the potential to exceed A$5.00 per share in valuation reflecting its lock-up arrangements to provide ISP services to China, continuing penetration of the Australian telecommunications carrier market, and the likelihood of garnering of significant market share at an early stage. In our opinion, New Tel has the potential to become the America Online of Asia ... an achievement in market share that has heretofore eluded AOL itself. History, Nature of Business & Outlook New Tel Ltd is one of six telco's currently providing telecommunications services and equipment in Australia. New Tel is one of the new second tier telecommunications companies to emerge amidst the worldwide deregulation of telecommunications. The Company actually dates back to 1988 when it was a business unit of Transcon ... also a public company traded on the Australia Stock Exchange and NASDAQ in the USA (NASDAQ symbol was TRIXY). Transcon's R&D business included applications of imbedded software technology in mobile equipment, and in July 1998, these commercial applications were bundled together under one corporate entity: New Tel. Last year, New Tel formed a strategic alliance with Xinhua News Telecommunications (Australia: XNTL), initially owning a 25% equity interest. XNTL, in turn, is a wholly-owned subsidiary of Xinhua Holdings of Hong Kong, the commercial arm of Xinhua News Agency in China and the fourth largest news agency in the world. XNTL's business focus is to provide telecommunications services to Chinese speaking people throughout Asia using its Australian telecommunications license as the operating base. New Tel currently owns a 75% equity interest in XNTL, providing telecommunications services, digital data communications and cellular systems in Australia. More recently, Xinhua News Agency announced that it was selling 18 websites owned by the Chinese Government to New Tel for $400 million (Australian Dollars), via the issuance of 200 million New Tel shares valued at $2.00 per share. Following this investment, New Tel would become the leading Internet Service Provider and Internet Portal in China with 7 million daily users. Industry observers expect usage to ramp up five times within three years to 33 million users ... one of the faster worldwide growth rates amongst an already blistering pace of growth. Upon consummation of this investment, Xinhua Holdings will own a 49% interest in New Tel. Australian alliances with non-Australian companies is not new. Nippon Telephone & Telegraph recently acquired a 49% interest in Australian-based Davnet (PWT) for A$118 million. This imputes a total valuation on Davnet (with annual revenues of A$3 million) of about A$240 million. A comparable market valuation for New Tel translates into a current share price of A$2.50 per share ($240 million / 90 million shares), prior to factoring in the added value from New Tel's China Internet Division, expected to contribute to EPS as early as March 2000 (4th quarter of fiscal 2000). Following this A$400 million investment by Xinhua, New Tel will also raise an additional A$200 million in capital via the issuance of 100 million shares at A$2.00 per share. The balance sheet following illustrates the results of these investments: Balance Sheet Highlights (in millions of Australian Dollars) June 1998 June 1999 Pro Forma Cash $0.2 $7.6 $607.6 Accounts Receivable 0.4 0.4 Inventory/Deposits 1.8 1.6 OCA 2.0 1.1 Total Current Assets 4.4 10.7 $610.6 Total Current Liab's 3.9 4.1 Net Working Capital 0.5 6.6 $606.6 Fixed Assets 1.5 1.1 Goodwill 1.7 10.4 Other Assets 0.8 0.1 Total Net Assets 4.5 18.2 $618.2 Represented By: Long Term Debt 1.6 1.1 1.1 Shareholders' Equity 2.9 17.1 617.1 Total Capitalization 4.5 18.2 $618.2 Book Value Per Share $0.20 $1.59 (Share Outstanding ... in millions) 90 390 SOURCE Security Capital Trading, Inc. (C) 1999 PR Newswire. All rights reserved. prnewswire.com -0- CONTACT: Raymond L. Dirks, or Contributing Analysts, Leo Murphy or Tom Heysek for Security Capital Trading, Inc., 212-339-2000 or 888-305-0050, or fax, 212-339-2015 (NWLL) GEOGRAPHY: New York China Australia INDUSTRY CODE: FIN TLS SUBJECT CODE: RTG News provided by COMTEX

To: SEC-ond-chance who wrote (83013)	1/20/2003 10:02:35 AM
From: StockDung	Read Replies (1) \| Respond to of 122087

NEW TEL EXPLAINS ENRON->Deloitte chief quits over links to New Tel January 21 2003 By Tom Ravlic The chief executive of one of Australia's top four accounting firms, Domenic Martino, has resigned following public scrutiny of his past involvement as a director of the troubled telecommunications company, New Tel. Deloitte Touche Tohmatsu announced that Lynn Odland, a past chief executive of the Australian firm, is again the firm's chief executive for at least the next six months while another chief executive is appointed. Mr Odland was the firm's chief executive from 1997 to 2001. Once Mr Martino had been anointed as chief executive, he moved from the post of chief executive to that of the firm's national chairman - a role he will now relinquish to deputy chairman Harley McHutchison. "I will probably see the firm out until at least the end of the fiscal year - being May 31 - but we may even get a chief executive even sooner," Mr Odland told The Age. A media statement issued yesterday by Deloitte quotes Mr Martino as saying he "believes firmly that any future investigation of New Tel will demonstrate that he properly fulfilled his duties as a director until he resigned in February 2002, 11 months before New Tel went into liquidation". Controversy over Mr Martino's involvement as a director of New Tel is due to media reports linking the former executive director's New Tel board membership and fees Deloitte was receiving for services provided to the telco. The Martino resignation has accelerated the release of a revised policy for directorships that has been approved in principle by Deloitte's board of directors. Most accounting firms, including Deloitte, prohibit partners from holding directorships in audit clients, but the revised policy will prohibit the holding of directorships in proprietary companies, except in rare circumstances. Those rare circumstances will typically have to be subject to the approval of the management of the accounting firm, too ensure there is no potential conflict. PricewaterhouseCoopers' policy, for example, requires partners and staff to seek clearance from the firm for membership of a board. Approval may be withheld if circumstances that might create a conflict of interest for the firm are identified. Mr McHutchison said Deloitte believed it was critical to ensure the community had confidence in the work of auditors. One way of doing this was to limit the circumstances where a conflict of interest, real or perceived, could arise from a partner or senior staff member being a director of a company. "We don't want to be in a position of a potential conflict of interest. "We think the community at large has a heightened concerned about conflicts of interest," Mr McHutchison said. Mr Odland said he expected no major difficulties with the implementation of the revised policy, because only four or five partners in a partnership of about 250 partners would be affected by the move.

To: SEC-ond-chance who wrote (83013)	1/20/2003 10:15:02 AM
From: StockDung	Respond to of 122087

12. Cheque's in the mail Peter Malone, chief executive of Perth's New Tel, reportedly told one of his shareholders that he was expecting a $750,000 exit pay-out. New Tel was placed in administration this month when Optus, a secured creditor, appointed PricewaterhouseCoopers administrators. smh.com.au smh.com.au - The Sydney Morning Herald

To: SEC-ond-chance who wrote (83013)	1/20/2003 10:34:41 AM
From: StockDung	Read Replies (2) \| Respond to of 122087

New Tel claims Martino's scalp By Fran Spencer DELOITTE Touche Tohmatsu Australian chief executive Domenic Martino has fallen on his sword amid controversy over his ties with collapsed Perth junior telco New Tel. In a statement yesterday, Deloitte said Mr Martino - a former director of New Tel and friend of its former head Peter Malone - had stepped down from the chief executive position at the big four accounting firm and taken leave "to consider his future". The resignation brings a sudden end to what had been a steady rise of the Perth-born Mr Martino at Deloitte, which he joined in 1994 by leading the Perth practice of second-tier firm BDO Nelson Parkhill in a merger with the first-tier firm. Deloitte said Mr Martino had cited the continuing publicity associated with his past directorship of New Tel as a reason for his departure. According to Deloitte, Mr Martino had also cited his belief it was good corporate governance and in the best interests of Deloitte and its people for him to step aside while New Tel's affairs were investigated, which could take several years. "Mr Martino believes firmly that any future investigation of New Tel will demonstrate that he properly fulfilled his duties as a director until he resigned in February 2002, 11 months before New Tel went into liquidation," Deloitte said. Despite his resignation from the New Tel board early last year, speculation arose that Mr Martino could be a target in insolvency actions after New Tel's then-administrator, Phil Carter, said a liquidator could bring actions against individuals "who had been acting in the capacity of director". Mr Carter has said that investigations by the Australian Securities & Investments Commission had indicated New Tel could have been trading while insolvent from as far back as December 2001 - a year before administrators were called in and two months before Mr Martino's resignation from the board. Recent media reports have also suggested Mr Martino received free mobile phones and network time from New Tel, which continued after his resignation from the board. Mr Martino was appointed Deloitte Australian chief executive in May 2001 and, as a member of its global executive committee, had championed a corporate culture aimed at aggressive growth and involvement of partners in corporate activities. News of Mr Martino's departure came as Deloitte's Lynn Odland, who stepped down as chairman to replace Mr Martino in the chief executive's role yesterday, banned partners and employees of the global accounting firm from holding directorships in public companies. Mr Odland, Deloitte chief executive for four years before Mr Martino's appointment, said holding directorships had been accepted practice in Australia but "changing market attitudes towards corporate governance" dictated a change in policy. Mr Odland yesterday denied Mr Martino had been pressured to resign. "I would say that in big picture terms, no . . . the firm doesn't like that kind of publicity but neither does Domenic," he said. "I have a huge amount of respect for Domenic, he didn't want the firm to suffer from any of these innuendos being flung around New Tel and therefore thought it was better to resign." However, he conceded the issue had been discussed before Mr Martino's resignation. "I'm the chairman and he's the CEO, so we have had discussions - I wouldn't try to say we hadn't," Mr Odland said. It is not yet known whether Mr Martino plans to resign from the partnership at Deloitte, with Mr Odland saying he planned to take time to "clear his head". He did not think the firm had any plans to ask for Mr Martino's resignation. © 2003 West Australian Newspapers Limited All Rights Reserved. Top Home

To: SEC-ond-chance who wrote (83013)	1/20/2003 10:53:20 AM
From: StockDung	Read Replies (1) \| Respond to of 122087

This is not to suggest that Ernst & Young, or One.Tel's previous auditor, BDO Nelson Parkhill, were tailoring their results, but that perspectives can change in a short space if future assumptions change. James and Lachlan in the cross hairs - smh.com.au - Biz-Tech ====================================== "The resignation brings a sudden end to what had been a steady rise of the Perth-born Mr Martino at Deloitte, which he joined in 1994 by leading the Perth practice of second-tier firm BDO Nelson Parkhill in a merger with the first-tier firm." Message 18465949 asic.gov.au One-Tel file ASIC obtains ongoing undertakings from former One.Tel officers Media release 01/446, 14 December 2001 ASIC commences civil proceedings against former One.Tel officers and Chairman Media release 01/441, 12 December 2001 ASIC obtains modified undertakings from former One.Tel officers Media release 01/343, 24 September 2001 ASIC obtains court undertakings freezing assets of former One.Tel managers Media release 01/205, 13 June 2001 ASIC restrains Rich assets Media release 01/199, 8 June 2001 ASIC commences investigation into One.Tel Media release 01/179, 30 May 2001