GMG has been the odd one out.............It has not recapitalised in the usual way ie....rights issue, go to an underwriter etc
GMG has reignited an old heartthrrob in MQG and fixed up immediate financing. But the rejected brokers bay back, GMG has more financing problems looming, and hey man look how dilutionary the MQG deal is? Which is more dilutionary ....a 1 to 1 rights issue that ENTRAPS current shareholders into participating?
By all accounts GMG is close to a major agreement with a cornerstone investor and the local banks will kick themselves when they realise the pot of Gold was there but could not see it. The VIX is below 30% and when this happens credit markets loosen.
Make no mistake the REITS are rising....
Charlie Aitken in todays Eureka says this.............
"Why walk away from the second-largest industrial property owner/manager on the planet? If I was Commonwealth Bank of Australia I would pony up to Greg Goodman, lend him $1 billion and take equity down here like Macquarie Group is doing via options. Colonial would then finally achieve some scale in its property funds management business and rather than paying top of the cycle multiples for property funds under management, you are getting the bottom.
GMG Price at posting:
33.6¢ Sentiment: Hold Disclosure: Held
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