Dealer I agree that the board must be replaced pronto. I think a...

Dealer I agree that the board must be replaced pronto. I think a key difference our opinion is the debate between private and public. Why am I in favour of private? Firstly BBG's gearing is still $100m. This is before they close non profitable stores and incur charges for their operating lease commitments. Secondly, turning a business around isn't simple and will require significant capex (just look at DJS who are spending $70-80m pa!). So my decision is based upon weighing up the investment required in BBG AND the current environment. Firstly I believe most retailers should be ungeared - just my opinion. Also as I stated before, my belief is that should the current takeover offer be spurned the SP will be easily sub $1. So new management have 2 choices - raise expensive debt (not optimal in my opinion) or ongoing dilution for existing shareholders. I think TPG (and the market) recognises that BBG still requires additional capital. The takeover will not be the end of TPG's cash outlay IMO. Unless they can flog some assets, there are no good options in public hands.

So bearing all that in mind I think TPG are going to give shareholders the best exit possible, otherwise further dilution is on the cards. And, just as a side note I'm not so confident we are at the bottom of the retail cycle as Kenneth said. Things can get far worse IMO. It isnt central but is a risk worth noting.

It is sad that long term shareholders have been destroyed by poor decision making. Can BBG work with TPG to get a premium to the offer price? Yes I believe so but at this stage I'm a fan of a bird in the hand.

Interested in your thoughts and what you would sell BBG to TPG for as a LT holder.