Telstra announces plans to acquire KAZ Group Limited

The joke within the IT industry was always the performance of KAZ.

The top position held by people who were basically cronies of Peter Kazacos, Johnny Limpydontis and Mr. Grotti (names have been changed to protect the guilty), could not effectively mange their way out of a paper bag. These position were held by unqualified, staff.

An internal memo illustrates the sentiments felt :

Kaz Computer Services, Share price value at one stage was worth $1.60 went all the way down to 11 cents last year, now slowly climbing.
One of the Manager's, Graeme Smith, due to the lack of perfomance, got a severance package in shares worth $1.6Mil, which was cashed in.

FY 01/02 turnaround 100mil profit $10mil, FY 02/03 turnaround 245mil profit 9mil.... please explain?
They signed up a couple of big contracts (eg. Pivot), which they did not meet the SLA's, and have lost a few other bids/contracts due to incompetancy.
Have been in the newspapers regading a few scandals with employee relations. Last year paid out big to an employee who was going to take them
for unfair dismissal, many more could have followed.
A company which praises itself for having migrant labour via a loophole in the system, imported from (india?) via New Zealand.
To keep thses people out of the public eye, they are employed in the Operations Centre, (high security), where they cannot be seen.
A steal, at only 400 mil, at the current profit levels an investment that will take 40 years to break even.
Considering a good real estate investment can yield a 200% profit in 5 years!!

Telstra aquired KAZ, for approx $400 million too much and is now trying to flog a dead horse.