By Glenn Dyer
Michael Pascoe on the Seven Network’s Sunday Sunrise had an interesting point this morning about the surprise departure last week of Mike Mangan, the well regarded media analyst from Deutsche Bank.
Mangan officially leaves next month, after Easter. The departure was noted in The AFR’s Rear Window column on Friday which frankly missed its importance completely.
No one else has wondered about the implications of the decision which resolves a thorny question for the Germans. How to position themselves for a seat on the rich News Corp gravy train out of New York.
Pascoe did on Sunday and raised a very pertinent question about whether anyone can really expected ‘independent research’ from investment bank analysts. Here’s what Pascoe said:
“Finally, and briefly, I can’t help thinking how much happier relations might become between Rupert Murdoch’s News Corporation and the Deutsche bank wheelers and dealers when media analyst Mike Mangan finishes up there in few weeks.
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“Mangan was rated number 3 in his field last year. He was one of the very few to stick their necks out and tell the truth about Murdoch’s grand plan to officially Americanise News Corp – that it was a dud deal for Australian shareholders – as the share price and Murdoch’s conduct continue to demonstrate.
“Mangan has a “sell” signal on News Corp – but Deutsche has decided to move responsibility for covering the Murdoch empire from Sydney to its New York
“And therefore Deutsche is downsizing its media team here from three to two – and decided that the respected Mike Mangan should be the one to go. Well, Rupert and his flunkies won’t miss him – but Deutsche’s Australian clients should”.
CRIKEY: It’s about time Australia’s financial media started getting stuck into investment banks, analysts and the like and calling them to account over their conflicts of interest, client structures, recommendations and reports.Meanwhile, we’ve put our coverage of News Corp’s increased bid for the Fox Entertainment Group on the site here: http://www.crikey.com.au/articles/2005/03/005-0001-2970.html