Unilife, the retractable syringe maker headed by colourful Irishman Alan Shortall, has finally hit back at ''malicious blogs'' by ''short sellers'' who accused it of hiring PR companies to write glowing articles about the company.
''Unilife has never paid anyone to write articles about it,'' the company said in a release to the ASX on Wednesday. Unilife ''categorically refutes any allegations of wrongdoing'' and has asked that the US securities watchdog investigate these short sellers for ''stock manipulation and illicit gains''.
The company says most of the allegations relate to wrongful termination lawsuit file by a disgruntled employee and points out that last month's $US60 million debt refinancing by Orbimed required ''extensive due diligence'' of its operations.
Following this due diligence, Orbimed agreed to lend the money at an interest rate of 10.25 per cent as well as help itself to as much as 2.75 per cent of Unilife's annual revenue during the six-year life of the agreement.
''We believe this agreement represents a significant endorsement of Unilife,'' Shortall said last month when the debt financing was announced. ''I believe Orbimed's decision to accept a small share of our future net sales highlights their confidence in our business model and future growth.''
Well, CBD agrees it says something about Orbimed's confidence in Unilife's future.
Surprisingly, Shortall's talents have also been called into question by the malicious bloggers. Unilife was forced to defend the record of its CEO, whose remuneration was higher than the revenues it generated in 2012. ''Mr Shortall has never been the director or officer of a company that has failed, or gone bankrupt,'' Unilife says.
CBD suggests the company might want to consider making a profit if it wants its CEO's record to remain intact. Unilife has generated more than $US150 million in accumulated losses in the past three years alone.
Golden CEO
Australia's largest gold miner, Newcrest, is backing its CEO-to-be where it counts. Sandeep Biswas takes the top job on July 4 with a remuneration package that could top $10.85 million in each of his first two years. This includes $2.3 million in base pay, plus $500,000 in cash or shares after the next two AGMs.
Newcrest's recent woes kept current CEO Greg Robinson to a paltry $2.7 million last year, just under $2 million of it base salary.
Smart stock deal
The right exit can also do wonders for a chief executive. Just ask JB Hi-Fi's Terry Smart who steps down in August with stock that is now worth $20 million. The board was keen to do a little more to reward his 14 years at the retailer - and stop rivals hiring him once he steps down.
A $1.3 million one-off payment restricts his employment prospects for a year and compensates him for some of the 755,392 options that lapse when he retires. Not all will lapse though. The board is also using its discretion to let him keep options which potentially vest in the 2014 and 2015 financial year if certain performance conditions are met.
With the share price north of $20, Smart won't be complaining.
REIT places
Does CBD detect the delicate signals that REIT land is gearing up for another round of takeover activity?
Three senior ''amigos'' have shifted from the analyst side of the fence to the greener grass of investment banking.
In the past couple of months, Simon Wheatley, long-time head analyst for Goldman Sachs' real estate investment trust sector will move to the deal side of the business to lead the real estate team in the investment banking division. Rob Stanton has moved from research at JPMorgan to the company's real estate investment banking area.
The joker in the pack is Bank of America/Merrill Lynch head of real estate research Simon Garing who has moved to Hong Kong to be the group's director of research with an ''administrative role'' in the investment banking team.
Got a tip? ckruger@fairfaxmedia.com.au
