Michael Pascoe writes:

Macquarie Bank’s head of international
public relations, Matthew Russell, has kindly written to assure us that
Crikey’s anonymous tipster yesterday was wrong in suggesting the Dyno Nobel IPO
had been brought forward for less than charitable reasons:

Just in relation
to Michael Pascoe’s piece on Macquarie Bank and the Dyno Nobel deal yesterday. He
quotes an anonymous subscriber as saying: “the Dyno Nobel IPO
has been brought forward as the bank needs to book some of the profits for the
transaction before financial year’s end.” This is incorrect. The Bank’s
financial year ends on 31 March 2006. The IPO timetable, clearly detailed in
both the prospectus and the press release issued yesterday by Dyno Nobel, has
the institutional offer closing on 5 April, 2006, and final price and
allocation taking place on 7 April, 2006. Shares are expected to begin trading
on the ASX on a normal basis on 13 April 2006.

Just in case any cynical souls might have
still wondered if the MacBankers were perhaps doing a little revaluation of the
assets ahead of 31 March, the way the Macquarie satellites routinely revalue assets, I rang Mr Russell and was
assured that is not the case with the bank itself. It is bank policy to carry
assets at the lesser of book or market value.

Thus, even though there’s a juicy $150
million or so coming to the bank the week after 31 March, none of it will show
in the investment bankers’ bonuses or the bank’s figures for 2005-06. I suppose it’s, well, just money in the
bank.

Meanwhile Macquarie’s march to own
everything is entering a rural phase with a plan to launch a $500 million wholesale rural trust with $100 million
worth of cotton farms as its first asset. You need $500,000 for a piece of that
action with the usual fees, but such beasts often end up going retail down the
track – which is generally just more money in the bank.

Peter Fray

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