"It looks like we might see a buyer interested in Babcock &...

"It looks like we might see a buyer interested in Babcock & Brown Power, UBS has been advising the company. But it seems like a group advised by Citigroup wants to talk numbers; Bahrain's Arcapita Bank. The rumours are that Origin Energy and AGL Energy have been linked as a potential buyers, and we know that Morgan Stanley dropped out. Now what will the buyer get, B&B Power has a capitalisation of $60.3 million and Guinness Peat Group holds 10 per cent of the stock. It is believed that the company 'broke covenants with lenders' like the Australia and New Zealand Banking Group. The operations business has been performing below expectations. Queensland and South Australian generation business are hurting. And Western Australia's Alinta earnings have been reduce due to electricity generation revenues and reduced gas demand."

Market Wrap - Street Talk
Private equity player sniffs around B&B Power
Nabila Ahmed
181 words
1 July 2009
Australian Financial Review (Abstracts)
AFNR
18
English
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