By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
PRIME Minister Perry Christie has suggested that negotiations between the Government and BTC’s parent company Cable and Wireless Communications over shares could have played a role in CWC’s CEO tendering his resignation.
Tony Rice, chief executive of CWC, will officially step down from the post on January 1, 2014. Phil Bentley, a former managing director at British Gas, is to succeed Rice.
The company’s headquarters are being relocated from London to Miami, so that executives can be nearer to their operating businesses in the Caribbean.
Mr Christie said: “It (the resignation) may stop negotiations and we have to determine whether the negotiations had some implication to what happened to him.”
He confirmed that Rice had agreed to handing over two-per-cent of the shares but with certain conditions.
With a new chief of CWC set to take over, Mr Christie was unsure of whether the agreement was still standing.
The Prime Minister said he was considering making the conditions discussed between himself and Rice public.
“Last Tuesday we had a negotiating committee presenting to us the submissions of Tony Rice as to settling the position as to the two per cent.
“The committee having received directions from the Cabinet was to go and communicate further with Mr Rice only to be told and advised that this morning (Thursday) he had resigned.
“I don’t want to say now (but) ultimately I may have to publish those conditions.
“He specified what he would want to happen and he wanted a better relationship between the Bahamas Government and Cable and Wireless and other matters.
“I don’t know the implications of his decision and so before I go any further I will have to determine what his resignation means for our purpose.”
In 2011, former Prime Minister Hubert Ingraham sold 51 per cent of BTC’s shares to CWC despite heavy resistance from Bahamians.
Comments
ThisIsOurs 11 years ago
This is the most weird situation ever. I could have sworn a few weeks ago that the PM said that CWC had given their conditions, they were unfavourable to the govt with implication that the deal would likely not go through. Now he's saying that they agreed to the transfer but the resignation may cause some hick up. Which is it? I hope we're not dragged through another year on this issue, it's clear the company has no interest in handing over controlling interest.
And he wants to publish the details of the negotiations...hmmm...I don't know if that's done..good faith, confidentiality and all
John 11 years ago
Not wanting to let the cat out of the bag but BTC/C&W may be, or soon be, cash strapped. Top UP/phone card sales have taken a drastic a dip since September and there has been little or no growth most of BTC's other products and services. BTC reduced the margin it pays to its phone card vendors just weeks ago to 9% (to be shared by wholesalers and retailers) now there's talks about another reduction in early 2014. When BTC was run by Bahamians vendors made $5.00 on a $20.00 card. Today they make $1.00! Since BTC knows that many of their vendors are not making a profit at the current rates and a large number of them will stop selling the products if the margin is made any smaller, such a desperate move could only point to a cash problem. Other resignations (or terminations) soon to follow in BTC's local offices. Government should maintain a "wait and watch" position to buying back shares as it may soon become easier to do so.
banker 11 years ago
BTC/C&W is not cash strapped. Their stock is outperforming the markets. They are up 13.21% over the year (investing in their stock would have made you between 5 and 9 nine times the amount that you would have made from bank interest). The started the year at 37.00 and closed Friday @ 42.85. Why do you make such foolish ignorant speculations? FYI, street vendors for top ups are a highly inefficient business method. Electronic top ups are much cheaper, more cost effective and more efficient. Stop the sip sip foolishness. Got any more cats that you want to let out of the bag?
John 11 years ago
The performance of a stock based on performance in a period prior has no relevance on what is going n in a company at present or what is expected in the short term. Furthermore the data you presented is for the parent company Cable and Wireless and not for the local subsidiary BTC, Why are you trying to play on my ignorance? Furthermore for the persons doing electrionic Tops Ups it is NOT cheaper They must invest in equipment, a cell phone, a laptop, or a POS machine for top up and some must have internet service and pay electricity bills. Doing the top up is more labor intensive as opposed to vendors just handing a customer a phone card and collecting their money; it is more time consuming, yet the commission is the same. Furthermore if you examine the data you, yourself, presented you can see that C&W stocks took a serious dive in June after starting out on a weak year and is just now recovering the $47.50 plus peak it had in May. It is still $4.15 and change short. Get you facts straight before you come here trying to be an expert and making yourself look like a fool! Now put your head in a bag you failed!
banker 11 years ago
LOL! The severe drop that you speak of happened because of the jitters caused by Vodaphone bid for the company you fool! It has nothing to do with business profitability. What size bag would you like for your head? Probably a large inflated one.
concernedcitizen 11 years ago
good one @ Banker . My .laugh for today
John 11 years ago
Regardless of what caused the drop in price, it still happened, dummy, and the stock hasn't fully recovered. While it may have closed at $42.85 on Friday, it is still about 5 bucks below what it was in June. And why you still Dwell on C&W (international) when I was talking about the local phone company? aka BTC.
Tarzan 11 years ago
It is far more likely that these unsustainable "vendor commissions" were part of the corruption problem that existed in BTC when it was owned by "the government", which of course means "owned by corrupt politicians". This claim that ending an unprofitable business practice suggests a cash crisis is just one more among the ten million reasons for getting all industry, including BEC into the hands of private operators as quickly as possible.
concernedcitizen 11 years ago
when it was owned by the Gov , the pin numbers were flying out the back door .i knew numerous locations where you could buy $20 worth of minutes for $10 ..John seems to think BTC should be another public corp providing jobs for the unemployable w/ the highest minute rates in the region and antique eqiupment that is not compatible w/ other systems as D Bartlett uses BTC as a volume buyer and purchaser to sell new equipment to TCI etc
John 11 years ago
I still wait on you to tell me three companies of 'the many that you know' that are happy with BTC's top up and phone card margins. And if some one is willing to stand in the sun and other elements for many hours a day to sell phone cards, braving the traffic even, how could you say that person is unemployable? What about all the retail establishments that sell BTC products...talkin fool is a very serious thing! And the pin number thing was an isolated incident where someone went to jail already..
concernedcitizen 11 years ago
Smittys grocery where i live love selling the top up ,half the time people come in for top up they buy something else ..it wasn,t isolated every other week i new where to buy hot minutes ,,,so you like paying 40 cents a minute on a system thats was not compatible w/ doing global business while insiders were using BTC buying power to sell TCI the new equipment ..i,m no bleeding heart like you i see unemployable dangerous offspring wandering our streets and it has nothing to do w/ slavery ,,it has to do w/ personal reponsibility //you can,t have women having 5 kids for 4 different absentee fathers be the norm and not have a crime wave ,,
John 11 years ago
Name three legitimate stores that are happy with the top up profits before bring up other issues. Most people who go into a store to buy one item end up buying other things so that's not exclusive to top up. That's why the space around cash registers are loaded with products.. its called impulsive buying...
ThisIsOurs 11 years ago
You have made the counter argument, who would do all of those things if they had a viable option?
Braving traffic? Breaking the law is more like it, they should not be in the middle of the road, they should not be crisscrossing traffic, they should not be impeding the flow of traffic at a traffic light they should not have messy stalls erected haphazardly on the side of the road ALL illegal acts. I doubt any business including BTC is betting their year's profit on how much phone card sales they make. They're an added service.
BTC does not force anyone to sell phone cards. Why can't you understand this? If a business thinks it isn't worth it to sell phone cards then it simply doesn't have to
John 11 years ago
If you so hate the people of the Bahamas, blacks especially, and the government of this country, why don't you try relocating? It may be good for you and for us!
ThisIsOurs 11 years ago
Is this a new approach? All persons with opposing views on any issue are subject to deportation? Is that how you run your house? Are you the only person allowed to speak there?
concernedcitizen 11 years ago
@John Did you really say that ?? B/C i as a Bahamian don,t think a private corp ,that put 210 million dollars in our treasury when purchasing BTC and now puts double the amount in governmemt revenue is not a social service like the rest of our government corps ,i shoild leave the Bahamas ..Bro your definetly mad ,,get over blaming whitey for your personal short comings ,,its really not a admirable quality ,,
John 11 years ago
I never said that you are full of double talk. What I said is that if you have so much problem with (Black) Bahamians and they way our government runs this country then you should go back where you come from. You keep trying to make every issue a black and white one. The only reason you put forth so far for opposing reparations is that it is about Black people getting paid. You always refer to Blacks as baby factories with high birth rates and single mothers. What about all the white babies born to crack moms and to both parents on crystal meth? what excuse can you blame them on Ingraham and Christie too or Obama, You are a racist to the bone, You are trying to unearth racial discourse when there is harmony among the races in these islands....prove you have some self worth and provide solutions by looking in the mirror and solving your own racist ways first..and if you still hate the Bahamas and Bahamians, I think there are 38 flights outta here every day, concernedcitizen
concernedcitizen 11 years ago
@John your out there boss , i love my country and sell it everyday to the people i enter act with .If me thinking the breakdown of the traditional Bahamian family has alot to do w/ our social ills makes me a racist your difinition of racism is extremely broad I THINK the leaders we had were basically good men ,not perfect , that all did some good for the country and its people black and white .I,m for Obama .Considering my people have been here since the U/S WAR OF INDEPENDENCE where should i go on the 38 flights a day ...... Your out there boss get a grip
proudloudandfnm 11 years ago
Perry is lying. A CEO cannot make the decision to sell majority shares. That would be the sole responsibility of CWC's board of directors. Why is Perry lying?
proudloudandfnm 11 years ago
In regards to the sale of majority shares the CEO is nothing more than a messenger. This is what the board wants, this is what the board says, this is what the board voted on. The CEO has no power to sell majority without board approval. Therefore the CEO resigning has no impact on the process. Perry is just using this to pander to the ignorant base of the PLP. Simple.
leeza 11 years ago
PLP all the way PLP all the way so said so Done. Where have all the crabs gone long time passing where have all the crabs gone long time ago where have all the crabs gone gone to their holes everyone when wll they ever learn when will they ever lean LOL The Freen National Movement was not the best in office but I can say without prejudice that they truly better than what we have now. The USA government was shut down for couple days, Our government been shut down since last year May.
JohnDoe 11 years ago
If there ever were an issue that demonstrates our total lack of business skills it is our governments handling of this issue. If we were to rewind the PMs statements on this issue they would sound like: negotiations have not gone our way; we can't afford to by back the 2%; the talks are far from over; CWC has resisted governments intention to buy the 2%; we don't want to create an adversarial relationship; CWC has offered to sell 2% with conditions; the CEO's resignation may influence negotiations and finally I may have to disclose details of our negotiations. When you telegraph to your negotiation partner that you can't afford to complete the deal what do you think they are going to do. Further, as noted above the PM knows full well that the CEO is not authorised to sell a single share of CWC so why he insists on making these divisive statements in the middle of so called negotiations is puzzling especially as the government does not want to create an adversariel relationship.
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