code-named "lazarus" , page-3

BBP should have guessed the outcome. Their expectation was unrealistic.

"Meanwhile, Babcock & Brown Power remains suspended from trading as it digests the implications of a ruling made in a pricing dispute with its supplier, the North-West Shelf Joint Venture last week.

BBP has previously warned an adverse outcome could sink the company, and if a report that it anticipated paying around $3 a gigajoule for gas in Western Australia is correct, it had unrealistic expectations that may not have been properly disclosed to its shareholders.

It is widely known the going rate is closer to $8 a gigajoule in that market.

Finally, there is speculation that Singapore Power – Babcock and Brown’s partner in the hugely overpriced Alinta acquisition – could look to offload its portion of the Alinta portfolio via a float or a trade sale.

Singapore Power owns 52 per cent of locally-listed SP AusNet, so one theory was that it could vend some or all the assets into that vehicle.

However, JP Morgan thinks SP AusNet’s appetite for acquisitions is minimal and it would be hard to fund any purchase through bank debt due to the short maturities on offer."

http://www.businessday.com.au/business/price-rules-in-private-equity-refloats-20091116-igs6.html