my bbi valuation / dbct sale flows, page-228

I agree that it looks like DBCT will be sold. What % and what price they get, well we will just have to wait and see.

The problem that the market has is that, even after selling 100% of DBCT at a good price, it is becoming increasingly apparent that they will need further asset sales to stop BEPPA from diluting. Cashflow from operations will simply not be enough to get them through. Until they can show this, the price will (rightly or wrongly) stay where it is. I cannot see some massive rally on the sale of DBCT (although a jump up in price would be warranted if they got a good deal). In the market's eyes, the dilution problem still remains.

I am really struggling to see how any Euorpean assets could be sold for a reasonable price and WestNet Rail as well now looks a bit iffy. I do believe NGPL is quite sellable and probably the rest of Powerco would be readily sellable if need be.

Logically, if they are forced to sell off their good assets firsts, it will only leave them with crappy assets remaining and what the true value of the remaining assets are is the problem facing BBI.

The sale of DBCT (unless it is 100% for a super duper price) is not going to return BBI to an investment grade rating and will therefore leave the sweep in place. The banks are definitely going to keep the pressure on them.

Holding BBI and BEPPA therefore I consider still to be extremely speculative.

(PS Can we start a new string? This one is huge and takes ages to access).