A review:
Theories for the anthrax mystery seem stalled at the following two:
1. a lone nut case, most likely right-wing and quite possibly anti-Arab
2. someone in the 9-11 terrorist cells
I think that there are reasons to at least consider financial motives.
First, consider the people and companies associated with the military's stalled vaccination development programs. The companies that got the contracts were typically small pharmaceutical boutiques with more boasts than real products or business plans that could actually float. But the US military was going to spend tens of billions of dollars on a series of vaccines, not just ones for anthrax. When the anthrax program, which was supposed to showcase BioPort and show how it was supposed to be done, bogged down, there might have been someone or some group willing to use an anthrax scare to help out their own investments.
The scientists and researchers hired from government and large pharmaceutical companies to come to BioPort apparently put their life savings into BioPort stock thinking it was a sure bet because their new company was designated to be the sole supplier of the vaccine (btw, Sec. of Def. Rumsfeld himself has extensive ties to pharmaceuticals, some of which are competing to get vaccine contracts). Such people at BioPort are also the types of people most likely able to get their hands on small quantities of weaponized anthrax, since it would be needed to test the effectiveness of the vaccine against pulmonary anthrax.
Now I've find another company that could be the center of suspicion. Caryle Group's IT Group is, among other things, a waste management contractor with the exclusive contract to clean up Washington DC in the event of an anthrax attack.
That the IT Group should be linked to the interests of Carlyle Group should hardly be surprising. Their business plan in any sort of waste management is based on being able to get government contracts.
This does NOT mean that conspiracy to terrorize and murder with weaponized anthrax has to go to the top. But if you could find someone making investments with BioPort and/or IT Group who is also an anthrax research scientist, you might find someone with quite a bit of economic motivation. As it happens, that might well mean people who work at BioPort and IT Group. And they might be clever enough to use the double cover of 9-11 terrorists and the numerous right wing nut cases the US has to pull it off.
Here is a Hoover's description of IT Group. Note again that it is 25% owned by Carlyle Group and that it has the contract with the federal government to provide emergency services for an anthrax attack!
http://www.hoovers.com/co/capsule/4/0,2163,10802,00.htm
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What IT is, is The IT Group. What IT does is manage hazardous waste. The company assesses risks and provides property and equipment decontamination and restoration, including land disposal sites that contain hazardous chemicals or radioactive materials. With about 100 offices worldwide, it also offers environmental engineering, construction, facilities management, and consulting services. US government contracts (including a contract to provide anthrax emergency support services in Washington, DC) account for 50% of sales. Burdened by debt, The IT Group has has filed for Chapter 11 bankruptcy protection and has announced plans to be acquired by The Shaw Group. Investment firm Carlyle Group owns about 25% of the company.
----- End of Hoover's capsule
Did you get all that? The company relies on gov't contracts for much its real profits (as well as contracts to oil rich ME states, typical of CG's government service company holdings). It's bankrupt. AND, it has contracts for anthrax clean up in DC.
Check it out, we should all sleep better knowing this:
http://www.theitgroup.com/emergency/index.asp
Next little twist in the plot. The company is bankrupt, creditors are screaming bloody murder (though I'm not sure where CG and their 25% stake are in this, afterall they don't hold bonds but owners equity--actually elsewhere it's been reported they own ITG flat out).
Now Shaw Group is going to buy IT Group, but the reason everyone is complaining is the amount they are paying is way too low, even given all the debt ITG is supposed to have. It would be nice to figure out what CG gets in the deal? Are they relieved from owning a dog? Or do they keep their stock and see a big pay off with Shaw taking a majority stake? Or perhaps both, selling off when it gets 'turned around'.
And what about Shaw? I know they are a direct competitor with Carlyle Group's Groupe Genoyer, and both are into supplying and supporting construction, pipelines, power plants, process industries. Does the ITG deal point to a tie up between Shaw and Carlyle Group (CG does similar such things with defence contractors like Thiokol tied up with companies like Alcoa--which was headed by now Tres. Sec. O'Neill).
There are also some Enron footnotes to all this. I think given the business that Groupe Genoyer and Shaw Group do, exposure to Enron is possible, but probably not as major creditors. They were in on the same big infrastructure projects as contractors and suppliers, with Enron being the lead--such as the power plant deal in India. They would both benefit from Caspian oil and gas development, and they would both benefit when Bush opens up more national wildlife reserves for exploitation. When Enron plunged into the construction side of things, these companies benefited.
Of course none of this proves a conspiracy over the anthrax or connections to 9-11 or Enron, but I think there is ample possibility of financial motive for someone or some group that would benefit from either the anthrax vaccine program or the anthrax clean up business at IT Group. The fact that the anthrax and other vaccination programs were in deep trouble and the fact that IT Group is bankrupt seem to make an anthrax scare all the more lucrative.
As I said to Hakki A off list: " I think naked financial motives are far more solid, and we know these are often tied to right wing ideology, 'national interests' and the military establishment anyway."
Also, here' s more about Shaw Group's deal to buy ITG and then there is a small bit about Duratek, another fascinating gem in the CG portfolio (more like 'how are they going to pump up and unload this piece of crap?).
http://www.hoovers.com/cgi-bin/offsite?site=HBN&url=http://www.theitgroup.co m
IT Group also obtained court approval, on an interim basis, for Sugar Acquisition (NVDIP) Inc, a subsidiary of The Shaw Group, to provide a debtor-in-possession (DIP) credit facility of $55 million.
The Court has set a hearing for February 12, 2002 to approve bidding procedures for the receipt of qualified bids. The IT Group currently contemplates that, absent a superior competing proposal, the transaction with Shaw will be completed before the end of the first quarter. During this period, The IT Group is open for business and remains focused on serving its customers. The closing of this transaction is subject to, among other things, court approval, higher or otherwise better offers, and receipt of required regulatory approvals.
The Shaw Group Inc. is the world's only vertically integrated provider of complete piping systems and comprehensive engineering, procurement and construction services to the power generation industry. Shaw is the largest supplier of fabricated piping systems in the United States and a leading supplier worldwide, having installed piping systems in power plants with an aggregate generation capacity in excess of 200,000 megawatts. While the majority of Shaw's backlog is attributable to the power generation industry, the company also does work in the process industries, including petrochemical, chemical and refining, and the environmental and infrastructure sector. The company currently has offices and operations in North America, South America, Europe, the Middle East and Asia-Pacific; and has more than 13,000 employees. For additional information on The Shaw Group, please visit the company's web site at www.shawgrp.com .
The IT Group addresses the infrastructure and environmental needs of both private and public sector clients as a leading provider of diversified services, including environmental, engineering, facilities management, water, construction, emergency response, remediation, liability transfer and information management. Additional information about The IT Group can be found on the Internet at http://www.theitgroup.com . The IT Group's common stock and depositary shares have been suspended from trading by the New York Stock Exchange. Information about the status of the common stock will be posted on the Company's web site as events warrant.
In addition to historical facts or statements of current condition, this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You may identify forward-looking statements by the use of words in the statements such as "anticipate," "believe," "expect," "should," "confidence" and other words and terms of similar meaning. Actual events will be dependent upon factors and risks including, but not limited to the outcome of the Company's Chapter 11 process as well as the Company's ability to successfully: consummate the transactions described above; continue to operate in the ordinary course and manage its relationships with its creditors, including its lenders, vendors and suppliers, employees and customers given the company's financial condition; sell all or parts of the company, whether to Shaw or otherwise; continue to do business with qualified subcontractors; continue to obtain bonding capacity; participate in bidding opportunities and have success therein; general economic conditions; and the company's ability to manage other uncertainties and risk factors, such as those described from time to time in the company's filings with the Securities and Exchange Commission, including its reports on Form 10-K, Form 10-Q and Form 8-K. SOURCE The IT Group, Inc.
CONTACT: Investors, Richard R. Conte +1-412-372-7701, or Media, William L. Mulvey, +1-202-682-1147, ext. 412, both of The IT Group/
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Hazardous waste is a terrible thing to mind, but Duratek (formerly GTS Duratek) does just that. The company treats radioactive, hazardous, and other wastes using methods such as incineration, vitrification, compaction, ion exchange, and metal decontamination. Formed by the 1990 merger of General Technical Services and Duratek Corporation, the firm processes waste (such as low-level radioactive waste) at its plants in South Carolina and Tennessee. Duratek also provides on-site waste management, environmental restoration, and nuclear facilities management at U.S. Department of Energy facilities (including the Hanford site in Washington and the Oak Ridge site in Tennessee). The Carlyle Group owns 23% of the firm.
Posted and commented on by Charles Jannuzi