suspension extended, page-4

GPG CIRCLING

It appears Patersons Capital Partners is not the only vulture circling Babcock and Brown Power as it digests the consequences of a recent arbitration decision affecting its West Australian gas business.

Guinness Peat Group, the largest shareholder in BBP with a 10.6 per cent stake, is also contemplating a recapitalisation deal.

GPG's founder, Sir Ron Brierley, told Insider yesterday his group was involved in the talks about refinancing BBP's $2.6 billion corporate debt facility and had capital available to inject into the business.

GPG would obviously prefer BBP to stay out of administration, as the huge amount of debt in the business means it would see little, if any, return on its equity stake.

It is believed GPG's talks with BBP and its lenders are at a serious enough stage to have allowed it access to due diligence materials.

BBP shares remain suspended until next week at the earliest as it takes stock of its precarious situation. But no doubt it would have been encouraged by Babcock and Brown Infrastructure's ability to complete a complex recapitalisation involving a cornerstone investor on Monday.