1109 [Dow Jones] STOCK CALL: Goldman Sachs JBWere says sale of Burns Philp's
(BPC) Tones herbs and spices business in North America likely to result in
downgrades in EPS pre-goodwill amortization of 7%-8% for FY05. This based on
valuation range of A$279-A$322 million and assumes all proceeds are used to cut
debt. Doesn't expect any improvement in EBITA interest cover ratio. Keeps
short-term Underperform, long-term Hold. Some concern Tones deal may highlight
shift to more aggressive acquisition strategy. Valuation 61 cents/share vs latest
59 cents, down 2 cents. (HGU)
BPC
burns, philp & company limited