ann out!, page-65

If people re-read the original AFR article about the csi offer, it is clear that at the time of writing BBI were trading at 9.7c. Had beppa converted at that price roughly 10:1 ratio.

their would have been approx 10bil shares, split roughly 80:20, with the existing BBI holders having the 20% and the Beppa holders having 80%

It was then proposed that the csi contributes $600mil to get 50%, diluting Beppa's 80% into 40% and BBI from 20% into 10%.

issuing approx 10bil shares to the csi to do that, for the price of $600mil is roughly 6c.

i really cant understand why people at any point in time started talking 1c BBI. No rumours of such has even been written.

Now things have changed. BBI is not at 9.7c anymore, but the general concept is still their.

Also their is a big difference between NAV being diluted and sp falling. In the above csi proposal, existing BBI holders have been diluted from 100% ownership to just 10% but sp hasnt and shouldnt fall.

If anything the RBS offer will have made the csi up his ante and the deal may be even better now, hence the Beppa buying.