The contracts are based on the cost of debt and in the case of BBP that cost equates to $20m per year, the term of that BNB management contrat is 20 years plus making the buyout price 20 years x $20m = $400m.
The cost of that buyout would be $400m.
BBP wont be taken over if the price of buying out the BNB manage ment contract is $400m and its assets are worth only $200m It has always been in BNBs interest to build up assets in BBP to get ahigher fee.
The way theyve sold that build up however suggest a major class action in the offing in the event of further probs.
BBP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
