nathan's bbi restructure.

Same assuptions as melua, ie 20c BBI share price. NAV after todays announcement and including a credit for DBCT sale above book, lets say NAV 60c. ($1.35bil) Shares on issue 2.5bil approx.

BBI chose not to force Beppa conversion. Voted on by all shareholders. this is sure to be passed.

At 20c, market cap is about $600mil. New investor or combination of investors, plus rights issue to existing holders to raise a further $600mil for a 50% holding.

Beppa would win because the now have extra $600mil buffer. The $600 mil raised would eliminate all corporate debt post DBCT sale, and if push came to shove the 4c owin to beppa holders could also be paid.

New Nav for existing and new inestor would be about $1.35bil+$600mil/(2.5bil + 2.55bilnew)shares
=$1.95bil/5.05bil
=$0.39c

earning/share and PER will be good and interest savings will be good. no bank sweep. up to date with beppa. fear of dilution gone. pay down debt from cash flows, nav will rise each year. after 3years(ie 2012) nav will have risen as debt is reduced. and SP will be closer to nav. beppa will be upto date with divs and trading closer to $1 because maturity is near and risk is low.

at this point either issue new shares to fund conversion, seek funding, or rollover terms. probably a combination.

This scenario is what ive been hearing, and believe the market is saying, and the AFR for that matter.

Ofcourse i didnt take sparcs into consideration, because that is a big unknown depending if convert before or after DBCT. However BBs proposal didnlt take into acount todays writedown and erosion of NAV, so the 2 factors cancel out somewhat.

BB may be correct, everyone is entitled to an opinion. My above scenario could be wrong. either way im comfortable with the way things could play out as BBI and Beppa holder.

feel free to discuss.

interest paid to beppa = huge rise in beppa sp.

new investor has alot more nav to play with, he will profit.

current holders arent diluted as much, only 50%.