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[q] What are we to make of this?
The man who controls the corporation that owns Omega Protein wants out of the menhaden fishing business.

Malcolm Glazer, owner of the Tampa Bay Buccaneers and the one-time soccer powerhouse Manchester United, has announced he wants to sell his 60 percent share of Omega.

The company that produces heart-healthy omega-3 fish oil and animal feed lost $6.1 million in the third quarter this year. Omega had an operating loss of $8.2 million over the first nine months of the year.

After two lousy years of fishing, the company's fortunes took another hit this summer when Katrina and Rita ripped through the Gulf and battered its processing plants.

Glazer, a nincompoop if ever there was one, paid $1.5 billion this year to take control of the soccer club, which promptly turned around and fell out of contention for the annual European soccer tournament for the first time in a decade.

Sponsors fled. Bills came due.

Glazer first sold his interest in an airbag manufacturer (it takes one to know one, Malcolm) for $51.2 million and now wants to unload Omega, the Chicago Cubs of commercial fishing.

Why should anyone here care?

Well, Glazer has to find a taker. The logical buyer might be a competitor, such as Cargill Foods or Archer Daniels Midland. But you can't rule out the possibility that the cash-strapped Glazer might sell off the company piecemeal. And that might put the Reedville, Va., plant in play.

Although Reedville turns out twice as much fish oil as any of Omega's other plants, there's the pesky matter of a looming five-year cap on the amount of menhaden that the company's fleet can scoop from Chesapeake Bay.

A showdown is likely between the regional regulatory board that imposed the cap and the Virginia legislature, which has to approve regulations. If lawmakers fail to act, the U.S. Commerce Secretary could shut down the whole Chesapeake Bay menhaden fishery.

Ken Hinman, president of the National Coalition for Marine Conservation, has written to Gov.-elect Tim Kaine to urge compliance, but with an agenda full of campaign promises to fulfill, menhaden isn't likely to be a front-burner issue.

What Omega suitor would want that baggage? Maybe Glazer's best bet is to sell the Gulf Coast fish business intact and find someone else for the waterfront property on Virginia's historic Northern Neck.

Condos, anyone? -----------------------------------------------------------

---This story was e-mailed to me, tried the SUN site to get it ,bombed out -Suposedly a Candus Thompson story --Any way a good read------[shy][shy]
 

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You can keep those condos up in your congested cities, thank you. There is enough land on the NNeck to develop without targeting business locations to shut down.

The proposed sale could be interesting. The gulf facilities are being repaired now and won't be operational till next year. This is kinda like a buy high, sell low strategy. The only jewel is their Reedville facility. On the business side, Fishmeal prices are at an all time high (selling at nearly twice historic prices). Alot of fishmeal is now being imported because supply can't meet demand. ......sooo, there are alot of factors in play for any potential buyer. If he sells his 60% ownership, I bet it will be at a fairly low price.
 

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You can make more money with less risk importing and selling fishmeal than you can catching menhaden.

The only reason Omega runs the operation is no one wants it. Could be the Gulf situation will push it over the edge.

Thats my opinion anyway

Boats
 
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