interesting

Centro unaware of reasons for share surge

Reuters

Centro Properties Group and Centro Retail Group have responded to a 'speeding ticket' issued by the Australian Securities Exchange, saying that they remain in discussions with a number of parties in relation to asset sales, and have nothing further to disclose to the market.
"There is no certainty or assurance that these discussions will lead to a transaction, what from such transaction may take, or what value might arise out of transaction, if any", Centro said.
Centro Properties Group shares were among the highest gainers on Thursday, rising 71.18 per cent to $0.505 before its shares were halted from trading, while Centro Retail Group's shares gained 31.88 per cent to $0.455, before being placed in a trading halt.
The Australian Financial Review had reported that six bids had fallen well short of what the stricken shopping centre group was seeking.
According to the paper, the Melbourne-based firm, which announced a $3.9 billion loss in December, is believed to have received bids valuing it at 90 cents per share.
While a 90 cent per share offer is well above its current price, it is seemingly not enough to put it out of risk of administration, and certainly falls well short of its December share price of $5.70.
"There are people there and there are negotiations, [but] it is far from getting to the outcomes point yet [and] whether it will deliver something is still to early to say," a source told the paper.
Centro, which borrowed heavily last year to fund a rapid US expansion, faces an end-April deadline to refinance $5.4 billion of maturing debt, and is under pressure to sell assets to raise cash.
A Centro spokesman told Reuters the refinancing process was proceeding strongly and there was good interest from local and offshore investors, but declined to comment further.
The company, which owns 700 US shopping malls, ran into trouble when credit markets froze up last year and its usual avenues of borrowing were closed off.


I found this part quite interesting:
"There are people there and there are negotiations, [but] it is far from getting to the outcomes point yet [and] whether it will deliver something is still to early to say," a source told the paper.