TP Note:Hmmmmm....I wonder (lol)!!! Analysts at Citigroup think "something BIG" could be on the cards! - Pie ______________________________________________________________
Source: www.news.com.au
Big Macquarie acquisition could be imminent - broker May 29, 2008 12:33pm Article from: AAP
MACQUARIE Group could be poised to make a big acquisition because it is raising capital when it already has $3 billion on its balance sheet, a broker says. Macquarie announced yesterday that it would raise $600 million from an issue of convertible preference securities (CMS).
At the release of its annual results earlier this month, Australia's biggest investment bank reiterated that it held $3 billion in excess balance sheet liquidity as a buffer for "volatility, growth and strategic flexibility".
Analysts at Citigroup think something big could be on the cards even though a hybrid raising of up to $750 million had been flagged in recent management presentations - and the fact that Macquarie has consistently grown capital ahead of business requirements.
"Given the level of existing balance sheet liquidity, the CPS issue will raise questions as to whether Macquarie has underestimated its funding requirements, or whether a sizeable investment opportunity is on the cards - we favour the latter," the Citigroup analysts said.
One of Macquarie's satellite funds, Macquarie Infrastructure Group, was in a consortium that was recently outbid to buy the Pennsylvania Turnpike, a large toll road in the United States.
Ends.
Cheers, Pie :-)
CNP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
