centro stocks have gossip sites aflutter

Centro stocks have gossip sites aflutter
By Bridget Carter
The Australian
September 25, 2009 12:01am
http://www.news.com.au/business/story/0,27753,26122611-462,00.html

THE securities of Centro Properties Group soared more than 40 per cent yesterday as retail investors traded more than a quarter of the stock and pushed the market capitalisation of the cash-strapped shopping centre owner up by $73 million. The company, which featured as the most talked about stock on sharemarket gossip websites yesterday, was issued with its third Australian Securities Exchange query in a fortnight as more than 184 million Centro shares traded and the company's market capitalisation rose from $291m to $364m.

The company's securities sailed to a high of 52c before closing at 37.5c - more than double the closing price of 17.5c a week ago and 8c higher than Wednesday's closing price, The Australian reports.

Centro Retail also experienced high trading volumes, as its securities rose 2c to 19c. The frenzy of activity triggered speculation that the group might be about to embark on a restructure or a capital raising, or that an announcement of a new chief executive to replace the outgoing head, Glenn Rufrano, was imminent.

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But most of the investment banking and property community were left puzzled by the sharp jump in the securities on mostly retail buying.

The company is 90 per cent owned by the banks and has a net tangible asset backing of minus 2.2c per share.

The view was that a takeover attempt was highly unlikely, given that Centro has more debt than equity.

Stockland's chief executive of commercial property, John Schroder, has remained silent about rumours he is the man Centro would like as chief executive.