is mirvac about to bid on becton

Interesting story. Mirvac raising cash to buy distressed assets.

Becton stated takeover price needs to be near NTA, maybe $1.20-$1.50, which would equate to $200M.

$300M raising more than enough to take over Becton, and leave some for working capital...

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http://business.smh.com.au/business/mirvac-in-trading-halt-amid-takeover-talk-20081103-5gsm.html

Mirvac in trading halt amid takeover talk

November 3, 2008 - 3:55PM

Shares in Mirvac Group have been placed in a trading halt pending an announcement, amid speculation the property developer and investor plans to buy distressed assets from fellow property trusts if a widely anticipated $300 million capital raising is successful.

Mirvac's shares closed on Friday at 98.5 cents. This followed a 23.4% plunge on Wednesday, which triggered a query from the Australian stock exchange (ASX).

Mirvac responded by saying its share price may have been affected by ``recent events within the property sector generally, both domestically and globally''.

"Mirvac is currently reviewing possible initiatives that currently remain incomplete and confidential,'' the company told the ASX.

"Mirvac is not yet in a position to announce these initiatives and potential transactions as they, (or some or any of them) may or may not be finalised.''

Burrell Stockbroking broker Michael Mayrseidi said he expected the proceeds of the anticipated $300 million capital raising would be used for acquisitions.

Mirvac has not yet confirmed that it will undergo a capital raising.

Mr Mayrseidi said the global credit crisis has savaged listed property trusts, presenting bargain-buying opportunities for stronger players.

"Mirvac had a small shortfall in terms of funds available for a short-term debt rollover - it wasn't big by any means - so why they're raising $300 million, I would expect is probably an attempt to pick up some distressed assets and to give themselves a good buffer,'' he said.

"The issue that everyone is going to have in this sector is whether or not there is going to be a wave of distressed assets hitting the market that will reiterate or give some grounding to the huge discounts that everything is trading at.

"The market has factored in some very serious falls in values.

"Certainly, the deal making activity - the sales volumes - in investment property has dropped off substantially.

"In the coming 12 months, there will be people who have funds to hand or previously had a low enough level of gearing to be able to bring funds to hand, who will able to benefit.

"There will be a lot of property coming to market and people who were perhaps overgeared are going to take a long time to recover.''

Mirvac's trading halt remains in place until the announcement is made or Wednesday, November 5.

Its shares were trading at about $4.25 in April.