banks hold key to cnp, page-44

Privateers circle troubled Centro Australian Financial Review 21st August

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"If speculation in US property and financial circles turns out to have any validity, Centro may be about to get a proposal from a private equity-style consortium that essentially involves a trans-Pacific separation of the group.

The word is that a consortium, said to be anchored by Blackstone Group and possibly also involving some of Centro's larger US creditor counter-parties is considering bidding for Centro NP or Super LLC. Other names bandied about, all of which are thought to have kicked some or all of Centro's tyres earlier this year, include Brookfield Asset Management, Farallon Capital Management and Simon Property Group.

The flip side of the proposal envisages Centro Retail acquiring all of the group's Australian property interests, partly funded by proceeds from selling its US interests and partly through some sort of recapitalisation. It remains to be seen if local institutions, which have been pretty decently dusted by Centro already, would support such a proposal."