financial report out, page-49

The key for BEPPA is whether there will be a window to sell their ords on the ASX post conversion but pre CI dilution. The CI does not lose by allowing such a window for Lowys etc (but gains by bringing them to the party) to offload their "$1 worth" (which would quickly be about 20-25 cents as the ords flood the market) to the mug punters.

Thus BEPPA at its current price may be an attractive gamble.

Ultimately, the CI wins, he writes the rules of the game as he plays it. Since 26 August he has gained $1.8b, the most of which which he will realise over time through cashflows and orderly asset sales. BEPPA and SPARCS have not been written down yet, the CI has more to gain.

The Bankwest acquisition demonstrates how these things play out. CBA booked a $500m gain on day one. It got a free funds management and insurance business. It took out its would-be main competitor on the Australian east coast. Thats how it works.

My posts contain opinion and speculation only. Under no circumstances should you rely upon them.