phone blower, page-27

I gotta say Im actually quite envious of those who got calls. Ive been waiting by my phone for the last month or so but nothing yet :-)

I have actually been rather confused over the vote. As a few have pointed out, should it not proceed, can we really have faith in management ensuring value is maximised for CER holders?

The deal sucks. The amount we are paying for the management rights is a disgrace and it makes no sense that CER holders are being given an equity interest in the new company based on Dec 10 values even though the merger was officially announced in Aug. Our properties were revalued higher in percentage terms than CNP's. If you put your property on the market in March 11 (This was when the idea of a merger was suggested to the market for the first time) and you received an offer in August 11 (announcement of the merger), would you accept an offer based on the Dec 10 or June 11 valuation.

Anyway, weve discussed these issues many times!

I did have another thought however. CNP's secured debt holders are getting 73% of which 14.5% is attributed to their interests in CER.

CER management have advised us one of the "risks" of not amalgamating with the CNP and other funds could be a loss in value of our properties.

Well CER has $1.8b in Aust assets as opposed to $4.4 direct property interests by Centro as a whole. A "no" vote by CER is more fatal for CNP secured debt holders than it is for CER.

Not only do they face substantial receivership costs but the losses they face would be much more susbtantial than non CNP CER holders. Non-CNP CER holders have leverage in that if they screw us up, they screw themselves up.

It may be cheaper for them to say charge us "zero cost" for management rights than to risk the amalgamation not proceeding and face a devaluation in their portfolio of hundreds of millions..... This is where we can play hard ball...

The only upside of a "yes" vote that appeals to me is the possibility of a clean takeover at or near NTA and there has been speculation in the media of late about this.

Who is attending the meeting on the 22nd? I will be there.

Cheers