confidence in recap approval appears misplaced, page-31

BAM wont initially allow their investment trade under water. I agree with that. However when I researched these guys I really did not get a comfortable feeling about sub set partnerships. They seem to look after number to the mutual exclusivity of everyone else. I dont like how they have gone about resolving the multiplex issue. My understanding from looking at this and their main site plus information has drawn the following conclusions:

1. Brookfield couldnt unwind the complicated structure of BBI in the time frame needed to put an offer in to recap BBI. So they went to this buy part plus options on everything. How anybody can invest side by side with someone who has options to buy certain parts and has other parts partly direct investment I dont know. I certainly wont invest like that. Its for this very reason that I wont allow Insto's to manage my investments. Its easy to follow the herd with other peoples money and say I have some of that growth in good times and none of the losses in bad times.

2. If your objectives are not totally aligned with BAM beware they will only look after number 1.

3. BAM have taken this step only as a partial process to finding out all the nooks and crannies in this investment. If it suits them you will end up with a cash shell over time and they will have the assets they want.

4. BAM will control management and thus control the assets even with only a 35% holding they will in fact be able to charge management fees etc. What a nice deal. As Melua put it BAM only want control of the asset base.

5. BAM IMO will get rid of all the management - that's good they just don't know it yet.

6. If I want to invest in this I must rather invest in BAM offshore.

7. IMO they wont mind if after a while the new BBI doesn't perform and the Insto's sell out they are not interested in BBI at all.

8. I agree with Melua you wont find my money invested here even short term. Maybe an opening punt but no longer than that.

Only a few Beppa's