I dont understand why an aussie bank does not buy the remaining 115M shares from DB at 0.05, and make an offer to BNB's administrators for their 8% at 0.05 and then ensure that BBI does not get swallowed by corporate debt - i.e. oversee sales.
The bank/s would refinance BBI's corporate debt or anything they need to keep them afloat at 11%
the banks would make a killing over 2 years
also BBI's cashflow would maybe not be as diminished if only one asset sale was required.
rough figures
total expenditure to buy shares 15M
loan BBI possibly 500M at 11%
interest received 55M p.a.
shares would be worth approx 65c in 2 years time
in 2011
110M received in interest payments
195M new value of shares
5M in divs
total
300M
not bad over 2 years as a return for loaning 500M and outlaying 15m in shares
I dont understand why an aussie bank does not buy the remaining...
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