Dumping the Ballast or Hiding It In The Shed?
One of my correspondents makes an interesting point in this whole Power8 plant disposal project that I do not think too many folks have noticed. As is typical with him, he focuses on finances as a construction project manager of some experience with such things.
As he notes, Russell Hotten of The Telegraph states that GKN is believed to have offered 200 million euros to buy the Filton facility outright-about $290 million at today's exchange rate. So far, so good.
However, in the 2006 balance sheet for EADS, its UK factories are valued at some 3.2 billion euros-almost $4.6 billion USD at current rates.
Helluva deal, right? He likens it to selling the seed corn and speculates that it has a connection with whatever GKN had to agree to in the way of job guarantees at Filton.
Der Spiegel calls this process "dumping the ballast". The disinterested observer might say it's more like hiding it underneath pretty wrapping paper in the Airbus cargo hold.