monkey buy: 3.52 nc, page-23

Well all of my NCM money is on her now at 3.5. Bounce tomorrow with some luck - she has gone way too far.

IMO, she will bounce tomorrow for whatever reason.

Sydney - Monday - August 18: (RWE Australian Business News) -
Babcock & Brown (ASX:BNB) has confirmed that the interim result guidance
given in its release on 11 August included the potential impact of
Babcock & Brown's equity accounted share of the impairment charges
announced today by Babcock & Brown Power (ASX:BBP).
Babcock & Brown equity accounts its investments in all its
managed funds. Those funds are subject to independent audit processes.
The interim result guidance range given last week reflected the
anticipated impairment review outcome for all managed funds. The review
of Babcock & Brown's half year financial statements by its auditors
has been carried out in the ordinary course and is in its final stages.
Babcock & Brown expects, as scheduled, to announce its results
on Thursday.
In June, the Babcock & Brown Board engaged KPMG to undertake an
independent review of its impairment assessment process. The outcome of
that review was approved by the audit and risk management committee on 8
August.
The Company's auditors Ernst & Young have been fully engaged in
and supportive of the review.
All financial covenants under Babcock & Brown's corporate debt
facility remain well covered and the facility does not stipulate a
requirement for any asset sales.
The facility is a three year evergreen facility which currently
extends to April 2011. Undrawn capacity and unrestricted cash at 30 June
was in excess of $800 million and as at Friday was in excess of $750
million.
The majority of the writedowns included in the interim result
are non cash items.
Operating cashflow for the half year to 30 June is expected to
be 60pc above the result for the previous corresponding period.
As disclosed in the BBP announcement, following the sale of
Tamar, Babcock & Brown's exposure to BBP will be $380 million which
includes pre existing facilities on development projects acquired by BBP
from Babcock & Brown and is still under construction. Babcock & Brown as
manager of BBP is working with the Board and its advisers UBS on
assessing the optimal long term capital structure for BBP including an
appropriate reduction in BBP's gearing.

*****

Phil Green, CEO of Babcock & Brown said, "The need for a range
in the guidance we gave on 11 August 2008 primarily reflected the timing
of the independent audit processes of our equity accounted funds and
took account of the potential impact of the announcement today by BBP.
"The interim result has been impacted by primarily non cash
write downs, reflecting the current market environment. However at the
operating level, in particular in the Infrastructure Division, Babcock &
Brown continues to benefit from strong industry dynamics, its leading
market position and continues to take advantage of a wide range of
attractive investment opportunities for its institutional investor
base."