I imagine BAM are feeling very contented. The lower this share price goes the more chance they have of whisking off the assets at the low call option price. The share price is largely irrelevant to BAM. Remember what BBI said in the prospectus document:
"Also, following the Recapitalisation, the Cornerstone Investor will become a substantial Securityholder (holding between 35% and 39.9% of BBI, with “top-up rights”to maintain its percentage holding as described in Section 13.6 of the Prospectus) with substantial influence over BBI (including rights to nominate Directors), and its interests may not always be completely aligned with the interests of BBI’s minority Securityholders."
Read the last three lines again. BAM do not care about new holders. They will act in their own interests. How ASIC allowed this recapitalisation to proceed is reprehensible. This should be a private BAM vehicle, NOT a listed public company. They shafted everyone and did a double shafting via the SPP, knowing that they would get enough to pitch in another $15,000.
BBI Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
