When PHG takes 10% of the shares out of circulation, does that mean that PHG now owns these shares (and can give them later to their top-managment as bonuses?) So, I am still confused: a) If PHG does not own the shares that were bough back either, why do it at all? Just increase the divident. b) If PHG now owns the shares, it looks like I have been robbed, or to say the least, I now have to buy back my shares to own the same fraction of the company with the cash that I just received.
In either case, the rational of the process escapes me, confuses me, and it does not look as buyback to me. Also, if it looks irrational, complicated and confusing, I fear the worst as far as PHG's motives are concerned. I am sure they have a good explanation.
In case anyone has not seen it Philips has announced its intention to build a $500 million high tech ghetto, sorry, I mean campus, in the garden city of Europe, Eindhoven. Eindhoven known for its beautiful vistas, which is second only to its climate and cultural offerings, was, I am sure, picked after rejecting other locations. Informed sources say that the Siberian continent, Gary, Indiana, Baghdad and Chernobyl were the other locations considered. Other reasons given for the Eindhoven choice was its proximity to the former corporate office, known for its ability to make quick decisions on a daily basis for implementation triennially (The exception is on leap years when an extra decision is implemented, assuming no one is on holiday). An additional inducement, I am sure, was the already in place highly flexible staff bureau to manage employee relations. (There are only 48 forms to fill out before you may leave your desk.) This center will "will be unique in Europe, indeed the whole world" , according to the press release. Apparently, the rest of the world has not seen the light of concentrating development in places where the sun doesn't shine (There is a double entendre hidden in that last statement. For those of you not familiar with the idiomatic expression, sticking it where the sun don't shine, I am sorry.) and the concept of cultural activity is not highly developed. Another "feature" is that " (t)he campus will be an open site, without surrounding fences." (Boy, what a mistake that is. How are they going to keep the people in and the cows out? Then again an employee's car will be removed far from the campus "where parking robots will park their car and when required bring it out again. I guess you do not need a fence if they take away your car)
"Work and social life will go together on the Philips High Tech" Ghetto. (No mention was made as to the probable birth defects in later generations due to inbreeding.) The rest of the world, for some unknown reason, does not believe that "talented (young) professionals" will be attracted to this new planned society. Though after seeing The Truman Show, I cannot understand why.(I particulary like that they have already chosen the street names "Software Boulevard." Disney anyone?) HAVE THEY TOTALLY LOST IT? Don't they understand that their Silicon Purgatory is doomed for failure. They cannot compete against the high tech leaders on their turf so they are going to retreat into their own manufactured world and hope to attract they type of individuals who have vision. Who in their right mind would want to sequester themselves in this cloistered world they want to create in an inhospitable environment? One of the great Philips problems is their inbreeding, their isolation amongst themselves, their belief that they are the center of the universe, that people will come to them and they don't have to go to people.
Why can't they attract the worlds best? If you ask them, it is not because they don't offer stock options. (OH NO MR. Bill, it will dilute our stock!) If you ask them, it is not because to get anything done you have to wade though the bureaucracy. If you ask them, it is not because they don't understand the meaning of action. If you ask them, it is not because their concept of modern human capital resources more closely resembles inhuman capital. If you ask them, it is not because new ideas are embraced like the medieval catholic church. (Can you imagine if Galileo worked for Philips?) No, the answer is to retreat like ancient China (sans the great wall) and create their own planned society of innovation. A society separate from the centers of the universe of thought and discourse. A center isolated from those with other ideas. A geographic locale where it seem obvious to everyone but them offers nothing, where recruiting top talent seems as likely as getting a world class Jamaican bobsled team. Where failure is all but assured.
This makes as much sense at General Motors building a high tech campus in Flint, Michigan, USA. Just as Eindhoven, Holland is the birthplace of Royal Philips Electronics, Flint, Michigan is the birthplace of General Motors. BTW, is Philips' cottage-like first light bulb factory still standing?
Just think if that money went into good marketing plans, long term, not a hit and run campaign, whre you see PHILIPS splattered about, as people still go "I kinda know them, didn't they used to sell audio equipment?...which they bail out of then jump back in to....cus' with this $100 Million campaign on now....when it fades away, and the name retreats again, they will ahve accomplished nothing, continuity keeps the name alive....do you think people would keep going to the fast food places if the ads were stopped, teh WENDSY, BURGER KING, McDONALDS ads are forever, they never let you forget the name, since the food is forgetable, but constant raming the name at you breeds aceptance and familiarity, GE always has there name on teh tube in some fashion, just to let you know tehy are still out there, PHILIPS puts on a big push, then they stop and teh name falls off teh minds of teh masses, they all think it has gone out of business...cus' the average consumer is fickle, they need name, brand awareness, they feel comfortable with a name they always hear, maybe in EUROPE it is done, but in the U.S., very inconsistent.....$500 MILLION.....it will be called PHILIWORLD, take a spin on the new rotary heads of a shaver , see yourself on a tv screen, watch a large screen display, listing all the companys we are dumping to keep our heads above water, like a sinking rowboat, they just keep needing bigger buckets to bail themselves out...PCC "instantly profitable"....oh no, we are sorry, never mind, lets get out of phones, we lied,oh well, lets try another business, oh since we have 12% of SEAGRAM....lets make bottled PHILIWATER.....you drink it and later you piss it away, just like we do with neat ideas and businesses...