She's on the nose.
VWAP approx 26.5 30 minutes before close forecasting 25 plus close with luck to mirror most other days.
Sydney - Wednesday - November 19: (RWE Aust Business News) -
Babcock & Brown (ASX:BNB) has progressed with its strategic review and,
in light of global market conditions, has decided to narrow and simplify
its focus through a restructure to become a specialist infrastructure
investment business.
Restructure of the business will create a segregated
infrastructure business within Babcock & Brown and is expected to be
largely implemented by mid 2009.
There is no set timetable for business and asset sales and
these will be available for sale and managed with a view to maximising
value, either as cross-border platforms or as separate geographic or
sector portfolios.
Babcock & Brown is committed to honouring its obligations as a
manager of third party capital at all times.
Chairman Elizabeth Nosworthy said this was the best way
to reduce debt levels and begin to restore shareholder value.
"We intend to repay debt through the orderly sale of the non core
businesses and assets andreduce our operating costs to create a
sustainable base which matches the focus of our ongoing infrastructure
investment business," she said.
"The restructure plan neither depends on nor precludes
discussions with potential strategic investors.
"However, it is still too early to say whether any such
discussions will lead to a transaction."
CEO Michael Larkin said the real estate and operating leasing
businesses have quality platforms and assets in their own right and will
benefit from orderly sale to investors or existing operators focused on
those sectors.
The restructure plan involves separating the Babcock & Brown
business into two groups comprising the specialist infrastructure
investment business - incorporating funds management operations and
stakes in core listed and unlisted infrastructure funds as well as the
PPP, wind, thermal and solar projects development pipeline - and the
remaining businesses and assets - incorporating real estate, operating
leasing, remaining corporate and structured finance operations and
assets, and investments or loans to B&B Power and other infrastructure
assets currently available for sale.
These changes are expected to lead to reduction from
approximately 1,600 people at 30th June 2008 to approximately 600 people
during 2010.
This will be achieved progressively through redundancies and
employee transfers as assets and businesses are sold.
A reduction in operating costs (excluding remuneration) of more
than 50pc or in excess of $150m by end 2010 is envisaged.
As part of the ongoing consultation with its banking syndicate,
Babcock & Brown has advised the bank representatives of the restructure
plan, which is expected to repay more than 50p ofs current $3.1bn
corporate debt facilities by 2011.
Babcock & Brown has also commenced discussions with its banks
about a proposed restructure of the facilities.
The amendments being sought include changes to the financial
covenants in existing corporate facilities, which Babcock & Brown will
find difficult to meet in the near term given the continuing and
substantial deterioration in market conditions.
Discussions with the banks regarding these changes are ongoing
and may not be concluded before the end of December this year.
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