my bbi valuation / dbct sale flows, page-94

Towie, sorry to say but it is you who are in dreamland.

A buy back by BBI for BEPPA, is the signal that all is well with the banks and indicates survival.

As soon as there is some interest in BEPPA for a buy back or similar it will fly.


For the last 12 months:
1. 563M BEPPA (out of 800M) have traded, ie around 75% of BEPPA
2. 5.5B BBI (out of 2.4B) have been traded, ie around 200% of BBI.

There is just not the liquidity to buy back cheap, as demand will out strip supply.

If BBI survives what will the BBI SP be in 2012 ? - Who knows, but BEPPA will have a value of $1.04 + deferred divs.

If(IMHO)BBI wanted to reduce BEPPA, they could do an off market buy back by getting holders to submit a buy back tender price. Some may be at 50C, who knows, and then just choose which to buy back. This is of coarse after corporate debt is reduced and improved credit ratings etc etc.