from melua. "Why did the company not announce the following when they knew exactly what was about to happen?
"The value outcomes of the transaction for BBI ordinary security holders, EPS holders and SPARCS holders are not certain and in the case of BBI holders may attribute a value to those securities that is less than recent trading prices and in the case of EPS and SPARCS holders may attribute a value that is less than face value."
cos that would have been waaaay toooo specific that BBI's would be worthless (march prices) in a CSI deal and BBI holders would have been in the Chifley Towers disrupting negotiations because they would see the that the bonds were going to get value closer to face, instead of staying parked, and there would have been a big kerfuffle re RBS etc. It would also have tipped off the type of VULTURE FUND deal, ie a massive dilution deal, when the details were totally SUPPOSED to be secret, due to the balance and values being worked out between all the holders. As it was lumping all the securities together answered the question ambiguously so still left hope for BBI holders who did not understand the predicament or the effect of higher ranking bonds etc.
The only honest description they could have given at the time was, basically we are giving the company away at the median values we could achieve in a fire sale so stiff cheddar, BBI's are finished, except we might give you something, and the bonds might get something too, but the banks will be fine thanks, and we get to pass go etc, my turn, got two sixes and landed on a railway(BUY) on my way to Mayfair(BUY) and I get another go cos I got two sixes.
Question for Dargie:- does the 4c of final value that has been balanced out as what each BBI should receive have any correlation to the 4c floor at which the death spiral effect bottoms out at, or is a coincidence ?? and how did you calculate that floor.( a number divided by a number will do if it can be distilled that simply)
ifandwhen
holding beppas
BBI Price at posting:
3.6¢ Sentiment: Hold Disclosure: Held
