tollhurst

1143 [Dow Jones] Privatization would make sense for Babcock & Brown (BNB.AU) after fall to record low of A$4.70, says Tolhurst senior client adviser Peter Morgan. "With their market cap currently at A$1.6 billion, it is absolutely obvious that a privatization proposal would be very much on the cards at the moment," says Tolhurst's Morgan. "With 40 something percent of the stock owned by the staff, (Chairman) Jim Babcock could quite easily look at a syndicate to privatize them." Announcement of A$7.5 billion purchase of Angel Trains shows Babcock & Brown still has faith in their model. Notes if bankers lose faith in Babcock & Brown it could have to sell some assets. Another trader says MBO announcement would be one of the most bullish signs BNB could make, more so than a share buyback. BNB down 26% at A$5.09. (DWR)