BloodYour talking like these guys have no options. They COULD...

Blood

Your talking like these guys have no options. They COULD have done a cap raise and yet they chose to go with Debt with an equity kicker at market price. (now clearly a discount but they have a fair bit of time.) The announcement appeared as an invitation to treat for any others with an appetite for high priced debt and free options.

Of course the banks didnt rollover they are in closed legs mode and wanting to derisk. They only operate in one other mode and thats open legs increase gearing covenents fast cars and loose women all round. One Boom operations the other bear market model of banking.

Same goes for GMG now deleveraging and trying to protect dilution. When the banks suck in property companies bear the full force. You yourself claim any cap raising could be at a 40% discount. On that basis this was a cheap deal for them to extend debt no? my numbers dont show a 40% dilution with the current deal....even on the assumption the deal attracts more debt for the free equity kicker.

Blood do you actually know anything specific about this company?

how much undrawn debt do GMG currently have?
What are their earnings?
How much do they need to get to 2010/11?
How big is the deficit assuming excercise of options?
Is that a JUMBO raise???????????!!! Whats that in dilution terms?

Ide like to understand your view but it appears like your a bit of a "no toes", you keep pulling the trigger before your guns out!

FJ