Carlyle 'given sweetener' in Qinetiq deal

[maddezmom]

Fresh uncertainty over flotation plans as MPs call for new probe into MoD's largest contract

Oliver Morgan, industrial editor
Sunday January 15, 2006
The Observer


MPs are calling for a fresh inquiry into a £5.6bn government contract used to 'sweeten' the controversial part-sale of defence group Qinetiq to US private equity group Carlyle.
The 25-year deal to manage the Ministry of Defence's 22 practice ranges is currently the MoD's largest contract. It was awarded to Qinetiq without competition and signed off on 28 February 2003, the same day that Carlyle paid £42.3m for a 34 per cent stake in Qinetiq. Senior defence sources have described it as, in effect, a 'dowry' from taxpayers to Carlyle.

Carlyle is now expected to make an eightfold return on its 34 per cent stake when 49 per cent of Qinetiq is floated next month, while executive chairman John Chisholm stands to see his £129,000 investment grow to around £23m.

~snip~
An MoD spokesman also denied that the contract was a sweetener. He said that there was no competition because Qinetiq was seen at the time as the only group capable of carrying it out.

He added that 12 firms had expressed interest in buying the Qinetiq stake and had been given information on the contract. Carlyle, the frontrunner to clinch the deal, was selected in September 2002, five months before it was signed.

more:http://observer.guardian.co.uk/business/story/0,,1686478,00.html

and an OpED;
Qinetiq arrogance has sunk this flotation to new depths
just cannot decide which part of the Qinetiq flotation I find most offensive.
Is it the fact that Qinetiq is little more than a test laboratory for the arms industry? The Ministry of Defence praises its track record in producing 'more efficient' battlefield weapons, which of course are more sophisticated and expensive ways of killing and maiming people, so I doubt the ethical funds will be queuing up to buy shares on flotation. But, as I don't have any moral objections to other death-dealing corporations, like BAE for example, it is not that which annoys me.

Is it the way the sale and flotation exercise has been handled so secretively? Behind-closed-doors deals were done with the secretive Carlyle group in the first place (see Oliver Morgan on page 1); then the flotation process has been drip-fed to uncritical commentators with no concern for parliamentary or financial regulators.

Or is it the obscene amounts of money which selected people will make on the flotation? Carlyle stands to make a profit of around £300m on its initial £42 million investment. Sir John Chisholm, the chairman, will trouser £23m, a very handsome return on his risk-free investment of £129,000 not so long ago. Other executives will also make big killings on the flotation. But, as I'm not against a chap making a pound or two, it isn't really that either.


more: http://observer.guardian.co.uk/business/story/0,6903,1686487,00.html

[Sal Minella]

1. Someone needs to note here that "The Carlyle Group" is the

secretive investment outfit that George the Elected (Poppy) wafts around for. He is not affiliated with them in any way, according to Carlyle Group spokesmen, but he gives speeches on behalf of the Carlyle group and rumor has it that Poppy's honorarium for one such is $100,000 per each. The Carlyle group is in weapons/warfare profits up to their elite eyeballs. (the name, suitably ephemeral, comes from the Carlyle Hotel, where the group met initially).

The Carlyle Group was behind the "Crusader" cannon, a horrendously expensive boondoggle that was stripped from the arms want-list once and mysteriously made its way back into production plans. The Crusader is a cannon, essentially, medieval in concept, totally unsuited for modern warfare, but designed to be highly profitable for its backers. Obviously the thing wouldn't work, but apparently the phallic imagery is difficult for the Big Guys to say No to.

I read recently somewhere that Carlyle had purchased Verizon in Hawaii. I have no idea what this bodes.

The neocons at least have their Project for a New American Century site up on the Web and are up-front about using naked aggression to take over the world. According to the Carlyle group, it doesn't even exist at all. Hardly. Well, it may exist. Who's asking?

Edited for typo.

[PATRICK]

2. Poppy

and others quickly distanced themselves- bit- from Carlyle when it was noted. Their very actions at all times show intimate connections with this war profiteering octopus- and the Saudis.

[emad]

6. John Major stated in 1999 that George Prescott Bush was a

minority shareholder in Carlyle like himself and had received 'nominal shares' in an arrangement regarding consultancy fees.

SP HOW MUCH WILL POPPY'S RAKE OFF BE????

[baby_bear]

9. Bush Sr resigned from Carlyle in 10/2003

...as a senior adviser.

see http://www.hereinreality.com/carlyle.html
Lots of good info and links here.

I remember that Carlyle took its web site down right after 9/11.

b_b

[The Backlash Cometh]

3. Do you think this should get a bump for the Great Page?

It might be smart to keep an eye on where the Carlyle Group is operating these days. May tell us where they plan to go after we boot their sorry asses out of this country.

[MrPrax]

4. Another Annoyance...

There have always been rumours that BLiar was negotiating a parachute into Caryle after his 'good service'...the fact that it is chocked full of former high-end politicians should give pause for thought about possible conflicts of interest.

Also you would think that given the 'research', a UK Labour gov't would promote a national ownership policy...why give away research that might prove far more valuable or even 'senstive' in the future? Something is not right...I would imagine if a Euro consortium there would be lots of objections.

[0007]

5. The Carlyle Group rules. Bar None!

Press Kit

The Carlyle Group is a global private equity firm with more than $34.9 billion under management. Carlyle generates extraordinary returns for its investors by employing a conservative, proven and disciplined approach. Carlyle invests in buyouts, real estate, leveraged finance and venture capital in North America, Europe and Asia, focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, healthcare, industrial, technology & business services and telecommunications & media. Since 1987, the firm has invested $14.9 billion. The Carlyle Group employs more than 600 people in offices in 14 countries.
Fact Sheets:
The Carlyle Group
Carlyle Europe
Carlyle Financial Services Group
Carlyle Global Aerospace and Defense Group
Carlyle Global Telecommunications and Media Group
Carlyle Healthcare Group
Carlyle Asia Partners
Carlyle Europe Partners
Carlyle Japan Partners
Carlyle/Riverstone Global Energy & Power
Carlyle Asia Growth Capital Group
Carlyle Europe Venture Partners
Carlyle Venture Partners II
Carlyle Realty Partners
Carlyle High Yield Partners
Carlyle High Yield Partners - Investment Dealers' Digest (9/29/2003) "Carlyle's Debt Team..."
Carlyle High Yield Partners - The Washington Post (11/8/2004) "Carlyle Increases Its Interest in Debt Deals"

More here

[Sal Minella]

7. Ah, what a helpful website! FAQ answers particularly!

From website:
=============================
Carlyle engages in management-led buyouts, which are the purchase of companies in cooperation with the current management. A combination of equity and debt is used for the typical transaction. The equity mostly comes from Carlyle’s various funds and other “co-investors” and the debt typically comes from major banks.
=============================
This deserves some sort of award for obfuscatory prose-writing.

[stillcool]

8. Whenever the name 'Carlyle" comes up...

I see James Baker III. :puke:

[silverlib]

10. A couple of other purchases...

Carlyle group bought a major movie chain about the time 911 came out. I thought this was probably a contol issue.

Just recently they bought Dunkin Doughnuts and Baskin Robbins. Now that rather floored me. Money laundering is the only thing that comes to mind on this one.