BBI have first choice on the railway, and have consistently stated that they will only buy if divs can be maintained at current rate i .e. 7 - 8% range. They also indicated that they are negotiating several other deals [ which is why they raised extra cash ] and expect another announcement in the near future, so if they have something else the rail deal will be off anyway. Clearly there is uncertainty currently, but it should all clear in the next few weeks. Based on previous div payouts the sp should be near to $2, and Pattersons Securities have just put out a BUY with $1.91 price target. If it drops to $1.52 l will buy some more.
BBI Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
