massive wall being built, page-26

Furthermore i discount the likelyhood of another prefs/hybrid share because of BBI complex structure.

BBI consists of :
6.corporate debt
5.network bonds
4.asset level debt
3.sparcs
2.beppa
1.ordinary shares

ordinary shares are last in pecking order if all goes pairshaped.

the structure is further complicated by owning 100% of some assets and much smaller stakes in other assets. Think of europrts, made up of many ports, some 100% owned others not. trying to figure out earning of assets within assets is difficult.

So in Euroports, BBI will have a 60% overall stake, but at asset level will only have 60% of 50% in some ports. The most recent deal with euroports is a definate step in the right direction. buying out minority holders of ports to gain as much control of individual assets as possible.

Then theres the debt attached to each asset. some assets have asset level debt only, others have asset + corporate, and others have bonds/beppa attached.

Once sparcs is gone (one way or another) in november, the debt riddle becomes clearer. add to that a reduction hopefully to nothing of corporate debt post dbct sale and the company begins to look like a more tradition structure.

the bonds and beppa are likely to be next in bbi sights to clean up the stucture and create transparency.

there is definately room for a beppa style debt in BBI, but really ideally only 1 issue. the main advantage of beppa(or equivalent) is its cheap debt. some of BBI debt is costing about 10%, so 1.5%, even 3% above BBSW is a bargain.