Sachz, You are correct on that if BNB go under the management agreement is extinquished without cost to BCM but I do not think BNB will go under. That aside I do think we will see a bounce in the share price of BCM if they can agree with BNB on a reasonable amount to buy out the management agreement from BNB. BCM have already announced that once this is completed they will look at completing the buy back that was cancelled as a result of the management rights issue being resolved.
However, if BCM agree to pay too much for the management rights then market may react badly and BCM share price would go down if market thinks BNB are getting a sweet deal. Hopefully the independent directors of BCM will drive a hard bargain in the best interests of BCM unitholders.
BCM Price at posting:
$1.33 Sentiment: None Disclosure: Held
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