Carlyle Group executed 'bait and switch' on water company sale, mayor says

[Newsjock]

Source: Missoulian

In an apparent “bait and switch,” a managing director for The Carlyle Group repeatedly pledged to sell Mountain Water Co. to the city of Missoula in exchange for its political support, alleges an amended complaint filed Monday by the city of Missoula.

“Such support was deemed necessary in order to obtain regulatory approval of Carlyle Infrastructure’s acquisition of Park Water Company and its wholly owned subsidiary, Mountain Water Company,” reads the complaint. “In early 2011, well before its purchase of Park Water Company and Mountain Water Company, Carlyle Infrastructure recognized that it was highly uncertain whether the Montana Public Service Commission would approve its acquisition. ... The city’s support of the change of ownership was considered essential to obtaining PSC approval.”

Last month, the city of Missoula filed an eminent domain proceeding in Missoula County District Court in an attempt to force global investment firm The Carlyle Group to sell Mountain Water, which it purchased in late 2011.

... ... Missoula Mayor John Engen is seeking to acquire Mountain Water to put control of Missoula’s drinking water system in the hands of the public.

Read more: http://missoulian.com/news/local/engen-carlyle-executed-bait-and-switch-on-mountain-water/article_eb30086a-d4bc-11e3-ae2d-0019bb2963f4.html

[blkmusclmachine]

1. ,

,

[Ichingcarpenter]

2. Obama's XFCC commissioner now works for The Carlyle Group

The Carlyle Group announced that the former FCC head joined the asset management company’s U.S. buyout team as a managing director and partner. He will focus on investments in technology, media and telecommunications, the company said.



Read more: http://thehill.com/policy/technology/194474-former-fcc-chief-heads-to-carlyle-group#ixzz30unmfqlF

[Enthusiast]

3. No wonder we are so thoroughly fucked.

Corruption from sea to shining sea.

[enough]

4. They didn't see this coming? Carlyle refused to put it in writing.

snip from the article>

According to the complaint, Carlyle Infrastructure managing director Robert Dove declined to put the agreement in writing. At the time, court documents said, Carlyle sought to purchase Mountain Water from Sam Wheeler, who had “an aversion to public ownership,” and Dove feared if Wheeler learned of the deal, he would refuse to sell to Carlyle.

“Mr. Dove was insistent that Carlyle’s intention to sell Mountain Water Company or its assets to the city at a later date could never be disclosed publicly or otherwise made known to Mr. Wheeler prior to Carlyle’s acquisition of Park Water Company,” reads the complaint.

more>

[hatrack]

5. Exactly - what the FUCK did they expect?

Dumbasses.

[GoneFishin]

6. Everybody should get screwed good once. Then they would spot scams like this coming from

a mile away.

Obviously way, way too naive to sit across the table from those con men.

If their insistence on secrecy can be proven somehow, it might prove fraud/conspiracy.

I hope the city is able to take the company by eminent domain.