Robert Holmes à Court
Encyclopedia
Michael Robert Hamilton Holmes à Court (27 July 1937, Johannesburg
, South Africa
– 2 September 1990, Perth
, Western Australia
) was an entrepreneur who became Australia
's first businessman worth over a billion dollars before dying suddenly of a heart attack
in 1990.
Holmes à Court was one of the world's most feared corporate raiders through the 1980s, having built his empire single-handedly from virtually nothing to a diversified resources and media group with an estimated worth prior to the 1987 stockmarket crash
of about $
2 billion. Shareholders in the company that became his flagship, 'Bell Resources', enjoyed enormous investment growth.
He died of a sudden heart attack in 1990 at the age of 53. As he had died intestate, Holmes à Court's estate was divided equally among his widow Janet
(née Ranford), and their four children.
but spent much of his early life in Rhodesia (now Zimbabwe
). He was educated at Michaelhouse
, in what was then Natal
, South Africa
. Holmes à Court began his tertiary studies in 1957, at Massey University
in New Zealand. He graduated with a degree in agricultural science (forestry
). He then moved to Perth, Western Australia in 1961, to study law
at the University of Western Australia
. In 1966, he married science teacher Janet Ranford
. Holmes à Court formed a law practice in Perth in 1967, in partnership with Nicholas Hasluck
.
. In what he later described as his most challenging "takeover", probably because it was his first, he found a way to invest $500,000 in the ailing business, on the proviso that the state
Minister for Industry, Sir Charles Court
, would persuade the Government of Western Australia
to forgive the $500,000 in loans they had made.
While at Michaelhouse
School, Holmes à Court was reputed to be a contemporary of and apparently friendly with members of the Oppenheimer family, but in fact this is incorrect; none of the Oppenheimers attended Michaelhouse but went to school in the UK. Since Oppenheimer controlled the giant de Beers diamond and gold mining business they would have had ample funds to finance Holmes à Court should they have wished. In fact, after Holmes à Court's death it was suggested in various of his obituaries that the Oppenheimers did in fact provide sources of finance at various times, and this seems very possible. Alternatively, Holmes à Court's mother appears to have inherited a comfortable amount of money on her husband's and Holmes à Court's father's death, and so she may have provided some funding, although there is no evidence that she did.
After acquiring the company, Holmes à Court made it more competitive by reducing production costs, mainly by installing the latest wool milling and weaving machinery. This was acquired on favourable terms from a leading Belgian
equipment manufacturer, which was keen to enter the Australian market at that time.
Holmes à Court now controlled a company listed on the Australian Stock Exchange
, and from there he began to gain control of a string of small businesses, including Westate Electrical Industries.
Robert was also a prominent member of the Racing Community and owner of one of Western Australia's premier studs, Heytesbury Stud.
Together with Racing Manager, Valerie Gannon, he enjoyed great success with Thoroughbreds such as Black Knight, Haulpak, Pago Pago and Family of Man.
Bell acquired media interests including the Albany Advertiser, the Katanning
weekly, the Great Southern Herald, the Collie Mail and radio station 6VA. It also made unsuccessful bids for companies such as Griffin Coal, Greenbushes Tin and Emu Wines. These bids, while unsuccessful, earned significant profits mainly by aggressive defences from owners resulting in inflated share prices held by the bidder.
In 1977, Holmes à Court's brother Simon disappeared in mysterious circumstances in Africa. His abandoned car was found more than 1000 km from his home and where he was last seen in Botswana
. Author Geoff Elliott wrote a book about the disappearance.
During 1979, Bell made an unsuccessful bid for Ansett Transport Industries but was defeated by Rupert Murdoch
and roadfreight group TNT
. However, a profit of $11 million was made by Bell for future bids.
Bell Group made an unsuccessful bid for The Times
in 1980, and at the same time launched a new Perth newspaper, the Western Mail
, challenging the The Herald and Weekly Times (H&WT) which owned the West Australian
. By the end of 1980, Bell Resources had accumulated cash reserves of $100 million.
In 1981, it made a bid for Elders Goldsborough Mort for $120 million bid and failed, but earned a profit of $16.5 million on the deal.
During 1982, Bell took stakes in Rolls Royce
and Portland Cement
and made an unsuccessful bid for the H&WT group. Later that year it acquired Perth television station TVW-7
.
Bell subsequently acquired a television station in Adelaide
and a handful of small regional radio stations.
Unsuccessful bids were made for Carlton & United Breweries
and Elders IXL but as usual, Holmes à Court's strategic corporate planning let him walk away with a profit.
In 1983, Bell bought Perth mining equipment company Wigmores, and was renamed Bell Resources.
Through the ACC group, Bell gained control of Bass Strait
oil and gas explorer, Weeks Petroleum which owned a 2.5% royalty share in the Esso
-BHP
consortium.
In 1985, Bell acquired 13% of U.S. mining company Asarco
for $140 million and made an unsuccessful bid for Perth utility Fremantle Gas & Coke. In 1982 it acquired Lord Grade
's UK-based Associated Communications Corporation (ACC), and then sold off ACC's stake in Central Independent Television
and ATV Music publishing interests, including Northern Songs
, a company set up by The Beatles
to control copyright of their music. ATV Music Publishing was bought by Michael Jackson
, and as part of the deal, Holmes à Court persuaded Jackson to make a brief visit to Perth, in order to appear on Channel 7
's annual Telethon
.
Also in 1985, Bell Resources made its biggest and most daring bid to date for control of resources and steelmaking giant BHP, which was Australia
's largest company. Before the deal was finalised the following year, Elders IXL took a 20% stake in BHP, for $2 billion. In turn, BHP purchased $1 billion of Elders preference shares. The deal later resulted in action against Elders executives, including chairman John Elliott
by the corporate regulator.
Bell acted as a "white knight
" in defeating a £1.9 billion hostile bid from Lloyds Bank
for its competitor Standard Chartered Bank
.
In 1987, Bell purchased a stake in Pioneer Concrete and made a second unsuccessful bid for the H&WT group. The bid went to takeover competitor Rupert Murdoch
for $1.8 billion. Bell took ownership of The West Australian
, Perth's main daily newspaper. Bell also spent US$
800 million, to acquire 9.6% of Texaco
stock.
By the time of the October 1987 international stockmarket crash
, Bell Group — like many investment companies — had accumulated assets that were valuable but not generating revenue sufficient to cover debts. Holmes à Court's family company, Heytesbury Holdings
, at the time owned 43% of Bell Group, which in turn owned 40% of the cash rich Bell Resources. However, Bell Resources was not able to buy its parent, due to share raids being made on Bell Resources by Kerry Packer
, Adelaide Steamship Company
(under John Spalvins
) and IEL (Ron Brierley
). Merrill Lynch
withdrew its $1 billion line of credit facility, meaning that the parent couldn't acquire its subsidiary and thereby access the money.
included transferring cash from Bell Resources for its own purposes (thus breaching the company code and ultimately sending its chairman Alan Bond
to jail), transfer of ownership of newspaper holdings into Bond Media and disposal of certain assets including TVW-7.
During 1988, Holmes à Court concentrated on the rebuilding and expansion of his Heytesbury
subsidiaries acquiring Stoll Moss Theatres in London
, Sherwin Pastoral Co (owner of vast cattle stations in Northern Australia), and the Vasse Felix
winery in Margaret River.
In 1989, Heytesbury
bought the Victoria River Downs and major Sherwin Pastoral Co cattle and pastoral stations. Holmes à Court also traded in Jaguar
stock, as well as Christies and New Zealand media group Wilson & Horton.
During 1990, Bond Corporation announced a record $980m loss and Elders IXL followed with an announcement of a $1.3 billion loss. Bond Corporation entered a scheme of arrangement
in 1991, with receivers taking charge of Bell Group and Bell Resources.
from the time of her husband's death until 2005, when she retired. She was, at one time, Australia's richest woman. The couple's eldest son, Peter Holmes à Court
, is now a major investor and entrepreneur in his own right, after divesting himself of his share of Heytesbury, reported as A$35 million. Peter Holmes à Court
along with Russell Crowe
is the 75.8% owner of National Rugby League
club South Sydney Rabbitohs
. Another son, Paul Holmes à Court has since taken over as chief executive. Robert Holmes à Court's other children are Simon (married, with four children) and Catherine.
Robert and Janet Holmes à Court had 12 grandchildren by 2005, according to an interview with her. The eldest son Peter (b. 1968) is currently heir presumptive to his distant cousin, the 7th Baron Heytesbury
(b. 1967).
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
– 2 September 1990, Perth
Perth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
, Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
) was an entrepreneur who became Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
's first businessman worth over a billion dollars before dying suddenly of a heart attack
Myocardial infarction
Myocardial infarction or acute myocardial infarction , commonly known as a heart attack, results from the interruption of blood supply to a part of the heart, causing heart cells to die...
in 1990.
Holmes à Court was one of the world's most feared corporate raiders through the 1980s, having built his empire single-handedly from virtually nothing to a diversified resources and media group with an estimated worth prior to the 1987 stockmarket crash
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
of about $
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
2 billion. Shareholders in the company that became his flagship, 'Bell Resources', enjoyed enormous investment growth.
He died of a sudden heart attack in 1990 at the age of 53. As he had died intestate, Holmes à Court's estate was divided equally among his widow Janet
Janet Holmes à Court
Janet Holmes à Court, AC, HFAIB is an Australian businesswoman, and one of Australia's wealthiest women. She is the Chairman of one of Australia's largest private companies, Heytesbury Pty Ltd, having turned around its fortunes after the death of her husband Robert Holmes à Court in 1990...
(née Ranford), and their four children.
Early life and studies
Holmes à Court was born in JohannesburgJohannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
but spent much of his early life in Rhodesia (now Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
). He was educated at Michaelhouse
Michaelhouse
Michaelhouse is a full boarding senior school for boys founded in 1896. It is located in the Balgowan valley in the Midlands of KwaZulu-Natal, South Africa.- History :...
, in what was then Natal
Natal Province
Natal, meaning "Christmas" in Portuguese, was a province of South Africa from 1910 until 1994. Its capital was Pietermaritzburg. The Natal Province included the bantustan of KwaZulu...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
. Holmes à Court began his tertiary studies in 1957, at Massey University
Massey University
Massey University is one of New Zealand's largest universities with approximately 36,000 students, 20,000 of whom are extramural students.The University has campuses in Palmerston North , Wellington and Auckland . Massey offers most of its degrees extramurally within New Zealand and internationally...
in New Zealand. He graduated with a degree in agricultural science (forestry
Forestry
Forestry is the interdisciplinary profession embracing the science, art, and craft of creating, managing, using, and conserving forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit. Forestry is practiced in plantations and natural stands...
). He then moved to Perth, Western Australia in 1961, to study law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
at the University of Western Australia
University of Western Australia
The University of Western Australia was established by an Act of the Western Australian Parliament in February 1911, and began teaching students for the first time in 1913. It is the oldest university in the state of Western Australia and the only university in the state to be a member of the...
. In 1966, he married science teacher Janet Ranford
Janet Holmes à Court
Janet Holmes à Court, AC, HFAIB is an Australian businesswoman, and one of Australia's wealthiest women. She is the Chairman of one of Australia's largest private companies, Heytesbury Pty Ltd, having turned around its fortunes after the death of her husband Robert Holmes à Court in 1990...
. Holmes à Court formed a law practice in Perth in 1967, in partnership with Nicholas Hasluck
Nicholas Hasluck
The Honourable Justice Nicholas Paul Hasluck AM is an Australian novelist, poet and short story writer, and judge. He lives in Perth, Western Australia with his wife, Sally-Anne, and has two children.-Early life:...
.
Business career
Holmes à Court entered the corporate stage by accident in 1970, when his law firm was asked to act as receiver of a small publicly listed company, Western Australian Worsted & Woollen Mills (later Albany Woollen Mills, also known as AWM or WA Wool). The company was the single largest employer in the regional city of AlbanyAlbany, Western Australia
Albany is a port city in the Great Southern region of Western Australia, some 418 km SE of Perth, the state capital. As of 2009, Albany's population was estimated at 33,600, making it the 6th-largest city in the state....
. In what he later described as his most challenging "takeover", probably because it was his first, he found a way to invest $500,000 in the ailing business, on the proviso that the state
States and territories of Australia
The Commonwealth of Australia is a union of six states and various territories. The Australian mainland is made up of five states and three territories, with the sixth state of Tasmania being made up of islands. In addition there are six island territories, known as external territories, and a...
Minister for Industry, Sir Charles Court
Charles Court
Sir Charles Walter Michael Court, was a Western Australian politician, 21st Premier of Western Australia and member for the seat of Nedlands for the Liberal Party for nearly 30 years.-Early life:...
, would persuade the Government of Western Australia
Government of Western Australia
The formation of the Government of Western Australia is prescribed in its Constitution, which dates from 1890, although it has been amended many times since then...
to forgive the $500,000 in loans they had made.
While at Michaelhouse
Michaelhouse
Michaelhouse is a full boarding senior school for boys founded in 1896. It is located in the Balgowan valley in the Midlands of KwaZulu-Natal, South Africa.- History :...
School, Holmes à Court was reputed to be a contemporary of and apparently friendly with members of the Oppenheimer family, but in fact this is incorrect; none of the Oppenheimers attended Michaelhouse but went to school in the UK. Since Oppenheimer controlled the giant de Beers diamond and gold mining business they would have had ample funds to finance Holmes à Court should they have wished. In fact, after Holmes à Court's death it was suggested in various of his obituaries that the Oppenheimers did in fact provide sources of finance at various times, and this seems very possible. Alternatively, Holmes à Court's mother appears to have inherited a comfortable amount of money on her husband's and Holmes à Court's father's death, and so she may have provided some funding, although there is no evidence that she did.
After acquiring the company, Holmes à Court made it more competitive by reducing production costs, mainly by installing the latest wool milling and weaving machinery. This was acquired on favourable terms from a leading Belgian
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
equipment manufacturer, which was keen to enter the Australian market at that time.
Holmes à Court now controlled a company listed on the Australian Stock Exchange
Australian Stock Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
, and from there he began to gain control of a string of small businesses, including Westate Electrical Industries.
Robert was also a prominent member of the Racing Community and owner of one of Western Australia's premier studs, Heytesbury Stud.
Together with Racing Manager, Valerie Gannon, he enjoyed great success with Thoroughbreds such as Black Knight, Haulpak, Pago Pago and Family of Man.
The Bell Group
In 1973, Holmes à Court's AWM acquired Bell Brothers, a well known West Australian transport and contracting group, for $9.6 million, through a reverse takeover. Bell brothers would ultimately become his flagship company as Bell Resources.Bell acquired media interests including the Albany Advertiser, the Katanning
Katanning, Western Australia
Katanning is a town located 277 km south east of Perth, Western Australia on the Great Southern Highway. At the 2006 census, Katanning had a population of 3,808.-History:...
weekly, the Great Southern Herald, the Collie Mail and radio station 6VA. It also made unsuccessful bids for companies such as Griffin Coal, Greenbushes Tin and Emu Wines. These bids, while unsuccessful, earned significant profits mainly by aggressive defences from owners resulting in inflated share prices held by the bidder.
In 1977, Holmes à Court's brother Simon disappeared in mysterious circumstances in Africa. His abandoned car was found more than 1000 km from his home and where he was last seen in Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
. Author Geoff Elliott wrote a book about the disappearance.
During 1979, Bell made an unsuccessful bid for Ansett Transport Industries but was defeated by Rupert Murdoch
Rupert Murdoch
Keith Rupert Murdoch, AC, KSG is an Australian-American business magnate. He is the founder and Chairman and CEO of , the world's second-largest media conglomerate....
and roadfreight group TNT
TNT Logistics
CEVA Logistics is a global logistics company.It provides solutions in freight management, contract logistics, distribution and transportation management. The company runs a global network with facilities in over 170 countries and employs more than 49,000 people worldwide.- History :CEVA was...
. However, a profit of $11 million was made by Bell for future bids.
Bell Group made an unsuccessful bid for The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...
in 1980, and at the same time launched a new Perth newspaper, the Western Mail
Western Mail (Western Australia)
The Western Mail, or Western Mail, was the name of two weekly newspapers published in Perth, Western Australia.-West Australian newspapers:...
, challenging the The Herald and Weekly Times (H&WT) which owned the West Australian
The West Australian
The West Australian is the only locally-edited daily newspaper published in Perth, Western Australia, and is owned by ASX-listed Seven West Media . The West is published in tabloid format, as is the state's other major newspaper, The Sunday Times, a News Limited publication...
. By the end of 1980, Bell Resources had accumulated cash reserves of $100 million.
In 1981, it made a bid for Elders Goldsborough Mort for $120 million bid and failed, but earned a profit of $16.5 million on the deal.
During 1982, Bell took stakes in Rolls Royce
Rolls-Royce plc
Rolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...
and Portland Cement
Portland cement
Portland cement is the most common type of cement in general use around the world because it is a basic ingredient of concrete, mortar, stucco and most non-specialty grout...
and made an unsuccessful bid for the H&WT group. Later that year it acquired Perth television station TVW-7
TVW
TVW can mean:*TVW, a Seven Network owned station in Perth, Western Australia*TVW, a public affairs network in the state of Washington*"tvw", the false branding callsign of WISC-TV's digital subchannel and Madison, Wisconsin's MyNetworkTV affiliate...
.
Bell subsequently acquired a television station in Adelaide
Adelaide
Adelaide is the capital city of South Australia and the fifth-largest city in Australia. Adelaide has an estimated population of more than 1.2 million...
and a handful of small regional radio stations.
Unsuccessful bids were made for Carlton & United Breweries
Carlton & United Breweries
Carlton & United Breweries is an Australian brewing company based in Abbotsford, a suburb of Melbourne, Victoria. In 1983 it became a wholly owned subsidiary of Elders IXL and CUB was delisted. In 1990, Elders IXL renamed to the Foster's Group, and in July 2004, CUB changed its name to Carlton and...
and Elders IXL but as usual, Holmes à Court's strategic corporate planning let him walk away with a profit.
In 1983, Bell bought Perth mining equipment company Wigmores, and was renamed Bell Resources.
Through the ACC group, Bell gained control of Bass Strait
Bass Strait
Bass Strait is a sea strait separating Tasmania from the south of the Australian mainland, specifically the state of Victoria.-Extent:The International Hydrographic Organization defines the limits of the Bass Strait as follows:...
oil and gas explorer, Weeks Petroleum which owned a 2.5% royalty share in the Esso
Esso
Esso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...
-BHP
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...
consortium.
In 1985, Bell acquired 13% of U.S. mining company Asarco
ASARCO
ASARCO LLC is a mining, smelting, and refining company based in Tucson, Arizona that mines and processes primarily copper. The company, a subsidiary of Grupo México, is currently in Chapter 11 bankruptcy...
for $140 million and made an unsuccessful bid for Perth utility Fremantle Gas & Coke. In 1982 it acquired Lord Grade
Lew Grade
Lew Grade, Baron Grade , born Lev Winogradsky, was an influential Russian-born English impresario and media mogul.-Early years:...
's UK-based Associated Communications Corporation (ACC), and then sold off ACC's stake in Central Independent Television
Central Independent Television
Central Independent Television, more commonly known as Central is the Independent Television contractor for the Midlands, created following the restructuring of ATV and commencing broadcast on 1 January 1982. The station is owned and operated by ITV plc, under the licensee of ITV Broadcasting...
and ATV Music publishing interests, including Northern Songs
Northern Songs
Northern Songs was a company founded in 1963, by music publisher Dick James, Brian Epstein, John Lennon and Paul McCartney, to publish songs written by Lennon and McCartney , as well as songs written by George Harrison and Ringo Starr, who were all members of The Beatles...
, a company set up by The Beatles
The Beatles
The Beatles were an English rock band, active throughout the 1960s and one of the most commercially successful and critically acclaimed acts in the history of popular music. Formed in Liverpool, by 1962 the group consisted of John Lennon , Paul McCartney , George Harrison and Ringo Starr...
to control copyright of their music. ATV Music Publishing was bought by Michael Jackson
Michael Jackson
Michael Joseph Jackson was an American recording artist, entertainer, and businessman. Referred to as the King of Pop, or by his initials MJ, Jackson is recognized as the most successful entertainer of all time by Guinness World Records...
, and as part of the deal, Holmes à Court persuaded Jackson to make a brief visit to Perth, in order to appear on Channel 7
TVW
TVW can mean:*TVW, a Seven Network owned station in Perth, Western Australia*TVW, a public affairs network in the state of Washington*"tvw", the false branding callsign of WISC-TV's digital subchannel and Madison, Wisconsin's MyNetworkTV affiliate...
's annual Telethon
Channel Seven Perth Telethon
The Channel Seven Perth Telethon, known simply as Telethon, is an annual telethon produced by TVW, a Seven Network owned television station in Perth, Western Australia for two main beneficiaries; Princess Margaret Hospital for Children, and the Telethon Institute for Child Health Research, plus...
.
Also in 1985, Bell Resources made its biggest and most daring bid to date for control of resources and steelmaking giant BHP, which was Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
's largest company. Before the deal was finalised the following year, Elders IXL took a 20% stake in BHP, for $2 billion. In turn, BHP purchased $1 billion of Elders preference shares. The deal later resulted in action against Elders executives, including chairman John Elliott
John Elliott (businessman)
John Dorman Elliott is a former president of the Liberal Party, and former president of Carlton Football Club. In 2003 he was found guilty of trading while insolvent and in 2005 declared bankrupt...
by the corporate regulator.
Bell acted as a "white knight
White knight (business)
In business, a white knight, or "friendly investor," may be a corporation or a person that intends to help another firm. There are many types of white knights...
" in defeating a £1.9 billion hostile bid from Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...
for its competitor Standard Chartered Bank
Standard Chartered Bank
Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...
.
In 1987, Bell purchased a stake in Pioneer Concrete and made a second unsuccessful bid for the H&WT group. The bid went to takeover competitor Rupert Murdoch
Rupert Murdoch
Keith Rupert Murdoch, AC, KSG is an Australian-American business magnate. He is the founder and Chairman and CEO of , the world's second-largest media conglomerate....
for $1.8 billion. Bell took ownership of The West Australian
The West Australian
The West Australian is the only locally-edited daily newspaper published in Perth, Western Australia, and is owned by ASX-listed Seven West Media . The West is published in tabloid format, as is the state's other major newspaper, The Sunday Times, a News Limited publication...
, Perth's main daily newspaper. Bell also spent US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
800 million, to acquire 9.6% of Texaco
Texaco
Texaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
stock.
By the time of the October 1987 international stockmarket crash
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
, Bell Group — like many investment companies — had accumulated assets that were valuable but not generating revenue sufficient to cover debts. Holmes à Court's family company, Heytesbury Holdings
Heytesbury Pty Ltd
Heytesbury Pty. Ltd. is the privately owned company of the Holmes à Court family in Western Australia.Originally called Heytesbury Holdings, the company was formed by Robert Holmes à Court in the 1970s as the holding company of his rapidly expanding financial empire...
, at the time owned 43% of Bell Group, which in turn owned 40% of the cash rich Bell Resources. However, Bell Resources was not able to buy its parent, due to share raids being made on Bell Resources by Kerry Packer
Kerry Packer
Kerry Francis Bullmore Packer, AC was an Australian media tycoon. The son of Sir Frank Packer and Gretel Bullmore, the Packer family company owned controlling interest in both the Nine television network and leading Australian publishing company Australian Consolidated Press, which were later...
, Adelaide Steamship Company
Adelaide Steamship Company
The Adelaide Steamship Company was formed by a group of South Australian businessmen in 1875. Their aim was to control the transport of goods between Adelaide and Melbourne and profit from the need for an efficient and comfortable passenger service...
(under John Spalvins
John Spalvins
John Spalvins, born Janis Gunnars Spalvins, 1936, in Latvia, was Managing Director of the Adelaide Steamship Company from 1977 until the company's collapse in 1991. During this period under Spalvins' control, "AdSteam" became Australia's major corporate entity with interests and significant...
) and IEL (Ron Brierley
Ron Brierley
Sir Ronald Alfred "Ron" Brierley is a New Zealand investor and corporate raider, chairman and director of a number of companies in Australia, New Zealand and the UK. He founded "R. A. Brierley Investments" in March 1961 with no capital...
). Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
withdrew its $1 billion line of credit facility, meaning that the parent couldn't acquire its subsidiary and thereby access the money.
Takeover by Bond Corporation and SGIO
Holmes à Court initially disposed of some Perth properties before accepting a joint takeover by Bond Corporation and the State Government Insurance Commission (SGIC), in which both parties took a 19.9% stake in Bell Group. Holmes a Court retained 6% of Bell Group and received $340 million from the sale. Bond Corp was subsequently forced to bid for other shares in Bell with the result that it ended up with a majority shareholding of 68% of Bell Group. Bond Corp then proceeded to strip $500 million from Bell Resources in an effort to prop up its own debts. The asset strippingAsset stripping
Asset stripping involves selling the assets of a business individually at a profit. The term is generally used in a pejorative sense as such activity is not considered productive to the economy. Asset stripping is considered to be a problem in economies such as Russia or China that are making a...
included transferring cash from Bell Resources for its own purposes (thus breaching the company code and ultimately sending its chairman Alan Bond
Alan Bond (businessman)
Alan Bond is an Australian businessman noted for his criminal convictions and high-profile business dealings, including what was at the time the biggest corporate collapse in Australian history. Bond was born in the Hammersmith district of London, England, and emigrated to Australia with his...
to jail), transfer of ownership of newspaper holdings into Bond Media and disposal of certain assets including TVW-7.
During 1988, Holmes à Court concentrated on the rebuilding and expansion of his Heytesbury
Heytesbury Pty Ltd
Heytesbury Pty. Ltd. is the privately owned company of the Holmes à Court family in Western Australia.Originally called Heytesbury Holdings, the company was formed by Robert Holmes à Court in the 1970s as the holding company of his rapidly expanding financial empire...
subsidiaries acquiring Stoll Moss Theatres in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Sherwin Pastoral Co (owner of vast cattle stations in Northern Australia), and the Vasse Felix
Vasse Felix
Vasse Felix was the first vineyard and winery established in the Margaret River Wine Region. Established in Cowaramup in 1967 by Dr Tom Cullity, Vasse Felix is recognised as a pioneer of the Region.-Wines:...
winery in Margaret River.
In 1989, Heytesbury
Heytesbury Pty Ltd
Heytesbury Pty. Ltd. is the privately owned company of the Holmes à Court family in Western Australia.Originally called Heytesbury Holdings, the company was formed by Robert Holmes à Court in the 1970s as the holding company of his rapidly expanding financial empire...
bought the Victoria River Downs and major Sherwin Pastoral Co cattle and pastoral stations. Holmes à Court also traded in Jaguar
Jaguar (car)
Jaguar Cars Ltd, known simply as Jaguar , is a British luxury car manufacturer, headquartered in Whitley, Coventry, England. It is part of the Jaguar Land Rover business, a subsidiary of the Indian company Tata Motors....
stock, as well as Christies and New Zealand media group Wilson & Horton.
During 1990, Bond Corporation announced a record $980m loss and Elders IXL followed with an announcement of a $1.3 billion loss. Bond Corporation entered a scheme of arrangement
Scheme of arrangement
A scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors...
in 1991, with receivers taking charge of Bell Group and Bell Resources.
Events after his death
Heytesbury Holdings continues as one of the largest private companies in Australia. Janet Holmes à Court ran HeytesburyHeytesbury Pty Ltd
Heytesbury Pty. Ltd. is the privately owned company of the Holmes à Court family in Western Australia.Originally called Heytesbury Holdings, the company was formed by Robert Holmes à Court in the 1970s as the holding company of his rapidly expanding financial empire...
from the time of her husband's death until 2005, when she retired. She was, at one time, Australia's richest woman. The couple's eldest son, Peter Holmes à Court
Peter Holmes à Court
Peter Holmes à Court is an Australian businessman and a joint owner of the National Rugby League team South Sydney Rabbitohs together with Russell Crowe....
, is now a major investor and entrepreneur in his own right, after divesting himself of his share of Heytesbury, reported as A$35 million. Peter Holmes à Court
Peter Holmes à Court
Peter Holmes à Court is an Australian businessman and a joint owner of the National Rugby League team South Sydney Rabbitohs together with Russell Crowe....
along with Russell Crowe
Russell Crowe
Russell Ira Crowe is a New Zealander Australian actor , film producer and musician. He came to international attention for his role as Roman General Maximus Decimus Meridius in the 2000 historical epic film Gladiator, directed by Ridley Scott, for which he won an Academy Award for Best Actor, a...
is the 75.8% owner of National Rugby League
National Rugby League
The National Rugby League is the top league of professional rugby league football clubs in Australasia. The NRL's main competition, called the Telstra Premiership , is contested by sixteen teams, fifteen of which are based in Australia with one based in New Zealand...
club South Sydney Rabbitohs
South Sydney Rabbitohs
The South Sydney Rabbitohs are an Australian professional rugby league football team based in Redfern, a suburb of South-central Sydney, New South Wales. They participate in the National Rugby League premiership and are one of nine existing teams from the state capital...
. Another son, Paul Holmes à Court has since taken over as chief executive. Robert Holmes à Court's other children are Simon (married, with four children) and Catherine.
Robert and Janet Holmes à Court had 12 grandchildren by 2005, according to an interview with her. The eldest son Peter (b. 1968) is currently heir presumptive to his distant cousin, the 7th Baron Heytesbury
Baron Heytesbury
Baron Heytesbury, of Heytesbury in the County of Wiltshire, is a title in the Peerage of the United Kingdom. It was created in 1828 for the prominent politician and diplomat Sir William à Court, 2nd Baronet, who later served as Ambassador to Russia and as Viceroy of Ireland. His son, the second...
(b. 1967).