I sold my Beppa after I read the announcement re RBS but also read in conjuntion with the first announcement:
Announcement 4 September 2009:
"The transaction mechanics, including any conversion of hybrid securities and the basis on which it would occur, have not been determined.The value outcomes of the transaction for BBI ordinary security holders, EPS holders and SPARCS holders are not certain and may attribute a value to those securities that is less than face value or recent trading prices. Furthermore, associated sales of assets may be at amounts lower than their current book values."
They never modified that in the statement made later but by which time they had sight of Bams proposal so I thought the same carried through. The wording however is vague as it no longer refers directly to Beppa. But if the circumstances had changed so much between the two announcements I thought that this would have been noted.
- herewith paragraph (22 Spetember 2009):
"BBI Directors note that the value outcomes for BBI securityholders, both under the recapitalisation proposal announced on 4 September 2009, and pursuant to the RBS Proposal are highly uncertain and may attribute a value to those securities that is less than face value or recent trading prices."
At this time if memory serves me Beppa were roughly 2X BBI price or around 5c and 10c. This shifted dramatically over the next week or so that it cruised up to the 18c and bbi moved around a much narrower range.
Whilst I accept Towie's buying and any other who had the risk appetite I relied on the above information which when the final announcement comes out is totally incorrect. BBI is over valued and Beppa is undervalued. They had referred previously to both the counters so I didnt distinguish any change to their warning. I looked through the HC forum comments as well and one of the big debates at the time was the relative weighting of a beppa to a BBI. So its my contention that for someone to have been that certain to buy to around 20c its unusual. I sold and dont have any qualms about selling other than that even now I dont understand how come any large buyer would have been able from the public information to have any confidence that BBI was overvalued and that Beppa would come out so undervalued.
I actually in earlier threads argued that Beppa was undervalued in the scheme of things but when faced with these announcements thought we were all going to be done in.
maybe that explains my thoughts better.
I still made a profit and am not sure of which way I would vote even if I still held but in reality I have unanswered questions.
No holdings at all.
BBI Price at posting:
3.6¢ Sentiment: None Disclosure: Not Held
