centro shares surge 33per defying market gloom

Published 3:41 PM, 16 Sep 2008
Last update 5:02 PM, 16 Sep 2008
By a staff reporter


Centro Properties Group Ltd shares have bucked the trend on a gloomy market, jumping as high as 33.33 per cent, a day after the troubled property investor said a planned $US714 million ($A880 million) sale of some of its US shopping centres had fallen through.

Centro shares were trading at 9.3 cents, up 29.16 per cent, at 1524 AEST, having reached a high of 9.5 cents.

The surge reversed the record 31.4 per cent slump experienced by the company on Monday, when its shares fell as low as 7.2 cents.

Centro said on Monday it had failed to close a deal to sell 29 US malls, a fortnight ahead of a critical deadline with its lenders for the refinancing of the company's debt.

But the company said talks with the purchaser were continuing, although there was no assurance the discussions would lead to a further agreement on a sale.

Separately, a report in The Australian said Centro had received support from banks to reject the offer, well below the original asking price.

According to the report, this may be a positive signal for Centro as it struggles to meet a critical September 30 bank refinancing deadline.

The company has already received several repayment extensions from its lenders.

Centro shares closed up 22.22 per cent to 88 cents.