Asciano Group, Australia's top ports and rail operator, went on a trading halt after its shares sank 60 percent to record low of A$0.69. At least two brokers raised concerns in notes on Tuesday about the group's ability to pay down debt. In a note titled "Asciano - Crisis of Confidence," Citi analysts said the group needs new equity of about A$2.1 billion ($805 million) to reduce its gearing and said it would have to undertake some combination of cutting distributions, selling assets and selling new shares to raise cash. Citi slashed its profit forecast for FY09 to a loss of A$37 million, and cut its price target on the stock by 87 percent to A$0.82. "They're on a knife's edge in terms of their ability to fund capex in the near term," said Will Seddon, an analyst with White Funds Management.
Reuters.
AIO Price at posting:
55.2¢ Sentiment: None Disclosure: Not Held
