Rear Window
The secret weapons of Vocus: Credit Suisse and the NBL
Joe AstonColumnistBack to this week's worst performer, Vocus Group. Beyond asking oneself how a company announces a massive (up to $70 million) downgrade in earnings a full 10 months into the fiscal year and only eight weeks since it last re-affirmed said guidance, it's also worth taking a look at the role played in the enterprise telco's fortunes by house adviser, Credit Suisse.
In June last year, Vocus tapped the market for $652 million for acquisitions, including Nextgen Networks. CS underwrote the equity raising, trousering a 2.05 per cent fee (yep, that's $16.3 million – thanks for coming!) and the investment bank's clients gobbled up the offer at $7.55 per share. The share price closed today at $2.38. And now who has Vocus reportedly called in as a defence adviser? Credit Suisse!
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