So, here is the last 3-day catch up!!
"Temasek cuts losses, offloads BOA stake - It could have lost US$3b on the deal, sources say; focus shifts back to Asia - The Business Times
TEMASEK Holdings has cut its losses on Bank of America (BOA). The Singapore investment agency has sold its 3 per cent stake in the bank, resulting in a loss of about US$3 billion as it renews its focus back home and on the region.
'We have divested our shares in Bank of America,' a Temasek spokeswoman said yesterday.
A source said that Temasek took a hit of about US$3 billion from the divestment, which was done in several tranches in the first quarter of this year when BOA shares ranged between US$2.53 and US$14.81.
Temasek invested a total of US$5.9 billion for a 14 per cent stake in Merrill Lynch since December 2007 before Merrill was taken over by BOA on Jan 1 this year.
One analyst said that selling BOA was part of spring cleaning ahead of Charles Goodyear taking over as Temasek's new chief executive in October. 'Temasek has done a classic switch, from its disastrous (BOA) investment to Chinese banks,' said the analyst. Temasek this week bought more shares of China Construction Bank, raising its stake to almost 7 per cent from 6.1 per cent.
Coincidentally, the seller was BOA - which regulators said needs to raise US$34 billion in capital following recent stress tests.
Since the end of last December, Temasek has pumped more money via rights issues into Standard Chartered Plc, DBS Group Holdings, CapitaLand and Indonesia's Bank Danamon."
This is a very confusing picture as the government of Singapore has said that Temasek's investment looked at the long term perspective. The investment in Merrill Lynch was not too long ago and the fact that it got taken over by BoA was actually a good thing as it would have folded then!
While one can appreciate the new CEO changing strategy but it left the big question of: why the vehement defence of the investment decision a few months ago by the most senior leadership of the government that there was nothing wrong in the investment except that they went it too early, unlike the famed investor, Warren Buffert who admitted he made one of the most stupid mistakes in his illustrious investment life!
I sincerely hope that the government explained this better instead of saying: it is a commercial decision to be decided by Temasek management as it is not the government that runs Temasek. I am asking this question because the people will be confused and worst, begin to doubt the sincerity of the government, and lose trust! This CANNOT be allowed to happen. The government has the trust of the people for all these years because it always do what it said it will do! With these flip flops, people are no longer sure!
As leaders, we must be sensitive when to be serious about explaining ourselves to avoid misunderstanding.
"Sat, May 16, 2009The New Paper - Former millionaire now sleeps at Changi airport
AMID the hustle and bustle of travellers passing through Changi Airport every evening, one man cuts a lonely figure. For about four nights each week, Mr Leong Chee Onn, 66, sleeps at the arrival hall of Terminal 2, with just a canvas bag of personal belongings in tow. The airport has been his home for the past three months.
It is a far cry from his former home - a bungalow in Oei Tiong Ham Park, off Holland Road. Mr Leong said he was a multi-millionaire before he lost his fortune to failed business ventures in the early '90s."
Life is unpredictable. The news also said he has found peace without his wealth though he prayed for health as he lost 2 toes from cholesterol problem. May he found what he seek with his peaceful mind.
"Singapore Air sees no signs of demand picking up It filled 63.7% of the space available, down 3.8 percentage points from a year ago. -Fri, May 15, 2009 Reuters
SINGAPORE (Reuters) - Singapore Airlines, the second biggest carrier by market value, saw passenger loads stabilise in April but said on Friday there were no signs demand would pick up in an industry reeling from fuel costs and flu worries.
Investors, sweetened by the firm's offer to hand out its stake in a food firm via dividends, shrugged off a collapse in fiscal fourth quarter profits to leave its shares unchanged, but saw a bearish outlook ahead.
Singapore Airlines said on Friday it filled 63.7 percent of the space available, down 3.8 percentage points from a year ago but up from 62.6 percent in March. It has slashed capacity and cut staff hours on falling passenger and cargo demand this year. But it said it would not change its business model, which is geared more towards the premium travel sector, and would stick to this year's plan to take delivery of five Airbus A380-800 superjumbos and seven A330-300s despite the slowdown."
This is a prime example of the macro environment changes overwhelming the supposedly best managed and most profitable airline in the world. The true is if SIA had not being the No. 1 airline in the world over the last few decades, this crisis would have caused it to collapsed like it's competitions in other part of the world. To ride through a rough cycle, you need deep pocket built from decades of profit and prudent balance sheet management.
It is taking a big bet though on sticking to it's premium brand strategy and taking delivery of the A380s! Looks see what will transpired for SIA in the next 24 months!
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