RBS, underwriter/bank to fund acquisition of Mission Viejo cell tower contracts, “tanking”

While the Mission Viejo city council presses to liquidate eight of our “cash cow” cell tower contract assets, I have just checked the financial position of the firm whom ATS hopes to use to close the deal. The Royal Bank of Scotland has itself not been immune to the global meltdown. According to the “telegraph” their shares are plunging.

“Due diligence.” What’s that? Desperation to unload a fixed revenue stream simply to pass $200,000 in commissions to the President of ATS Communications, our staff and council never bothered to read the bank’s financials while they question the ability of potential local buyers to fund this roughly $1.5 million liquidation-fire sale.

Simply go to the two following links, or read the text which follows:

Royal Bank of Scotland shares plunge

Royal Bank of Scotland shares tumbled almost 40pc in London today as fears intensified over the health of the British banking system.

“By Graham Ruddick
Last Updated: 5:29PM BST 07 Oct 2008

Royal Bank Of Scotland Group

The shares fell 58p, or 39pc, to 90p as investors bailed out of Britain’s second-biggest bank. The tumble came despite RBS denying press reports that it has asked the Government for more capital.

The chief executives of RBS, Barclays, Lloyds TSB and HBOS met the Chancellor, Alistair Darling, on Monday night and other senior members of the Tripartite Authorities.

Sentiment in RBS was also hit by a cut in its credit rating late on Monday. Ratings agency Standard & Poor’s yesterday warned that “RBS’s financial profile may continue to weaken” and a “combination of mixed earnings prospects, deteriorating credit risk in its key geographies, and difficult market conditions.”

RBS raised £12bn of extra capital earlier this year to help cope with multi-billion investment write downs linked to the credit crunch. Shares in the bank have fallen by 79pc in the past 12 months.

Last year RBS bought Dutch bank ABN Amro in a joint acquisition with Banco Santander of Spain and Fortis of Belgium.

The €70bn (£55bn) deal is seem by some investors as overpriced and in August RBS announced pre-tax losses for the first-half of 2008 of £691m, caused in part by write-downs linked with the ABN Amro deal.”

As I try to multi source data here is another report:

Published Date: 07 October 2008
Business Editor

THE Capital’s two banking giants took a battering on the stock market today as their shares continued to nosedive.
For most of the day, attention was focused on Royal Bank of Scotland as its share price plummeted, closing at only 90p – a fall of 39 per cent over the course of the day – wiping around £8 billion off its market value.
Gilbert comments. Will our city staff and city council question ATS to confirm that RBS is still capable of this funding opportunity remains to be seen.
That’s the problem you run into when hiring a consultant and give him an exclusive agreement to market city parks for placement of cell towers. Worse yet, as of last nights meeting, Tony Ingegneri only found one bidder willing to acquire these “maintenance free assets” yet we accept whatever he says as to the level of investor interest and financial stability.

Amazing. We set “net present valuation” based on only 15 years of cell tower leases by AT&T, Sprint PCS, Verizon, etc., yet the acquisition agreement calls for a fixed period of 30 years where the future revenue, while not evident, is surely more than zero.
Even governor Paylin tried to sell the former Alaska governor’s jet plane on E-Bay.

About Larry Gilbert