2. The cornerstone investor dilutes BBI after SPARCS and BEPPA have diluted BBI. Make no mistake, the cornerstone investor (especially if it is Brookfield) will demand 99% of the new equity after dilution. If that means BBI have to issue 300 Billion new BBI securities at 0.001c, they will do it. The CI will own all but three fifths of a banana sandwich and then they will acquire the rest by compulsary takeover and then de-list it and transfer all the assets into their portfolio in Canada. Kendrew, Sellar and Liossis probably then work for Brookfield Asset Management managing DBCT and the other OZ based assets. The situation is hopeless. I would not contemplate putting one dollar into BBI/BEPPA at current prices. The only possible investment would be after the triple murder takes place and even that's debateable the more one looks at the situation.
Melua, I have just got back from Bali and not having read an Aussie newspaper or logged on to a computer for 2 weeks, I have been oblivious to this recent BBI announcement. There have just been too many posts for me to read everything that has been said, so sorry if this has already been addressed.
In the conversion scenario you described above, what stops BEPPA holders from shorting BBI prior to any conversion and realising the full face value (assuming that is what it converts at based on some VWAP at the conversion time) of their BEPPAs ($1 + back interest). This option has been discussed previously for other potential outcomes before the CSI issue arose.
BBI Price at posting:
5.4¢ Sentiment: None Disclosure: Held
