BBI 0.00% $3.98 babcock & brown infrastructure group

bnb going under would be good for bbi

  1. 61 Posts.
    Traders may be incorrectly linking BBI's fate to BNB. If BNB goes into administration, BBI is entitled (and obviously would) terminate the management agreement between the two companies. This is set out in BBI's 2005 prospectus (when it first became BBI).

    Termination of the management agreement would remove the overhang on the stock, and would allow third parties to bid without having to pay out the management agreement.
 
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