abc close to deal on us assets, page-66

The statement states that "Morgan Stanley will buy 60% interest in ABC's U.S Business reflecting a value for 100% of the US Business of $775 million US dollars. The transaction will result in cash proceeds on completion of approximately 750 million Australian dollars. ABC retains a material ongoing presence in the U.S."

Although poorly written, it does say that ABC values its total US interest at $775 million US dollars. However, Morgan Stanley is willing to pay 775 million dollars for 60% interest of the US interest. It is a good deal for ABC which will enable it to get rid of approximately 750 million in debt. That's why ABC stated that it still retains a material ongoing presence in the US because it still has 40%. It has not sold 100% of the US business for 750 million which has been the misinterpretation of some.

Bad news for the shorters who didn't cover their position before the trading halt.