http://www.copyright link/business/...-arrium-flags-big-asset-sales-20150615-ghojew
The prospect of selling part of the mining consumables business has been mooted for past 6 months. Now commentators are talking about selling the whole of this growth business within ARI, to service the debt and effectively to prop up the troubled mining business and the under-performing steel businesses.
How desperate it has all become.
Many people warned over the past three to four years, that the debt millstone would be too heavy a burden, but there was hope that the falling AUD and a stabilisation of IO price would occur. I continued to hold the stock in this hope,although I have traded in and out a few times. Of course, IO tanked further than most expected and the steel and consumable businesses don't seem to have found much benefit from the lower AUD.
ARI' strategy, which appeared to be a good diversification strategy has been implemented , but has failed commercially.
How ARI gets out of this bind will be interesting to watch. I just hope they can achieve it.
FT
