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Koninklijke Philips N.V Message Board

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  • the_ground_hog_and_the_fox the_ground_hog_and_the_fox Jan 7, 1999 11:26 AM Flag

    PHG buyback a con?

    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.

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    • 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.

      • 2 Replies to AMahout
      • 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...

 
PHG
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