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Finance Viewpoint article.

Centro (CNP) – Decision time

Following my previous posts on this stock, it has been very volatile and I’m sure a lot of day traders have made and lost a lot of money on it. With D-day now approaching (Wednesday) Centro must get approval from the banks to extend its $4.2 billion debt repayment, or face receivership. There are a number of potential suitors lining up to buy parts of or the whole group, but the key question for existing shareholders is at what price. Also, it is more than likely the banks will consider extending the due date for the debt if there are some serious offers on the table. However, I think after Wednesday the Centro share price will stabilise based on the offer details being made publicity available in the media. This will put a firm floor on the stock price and should reduce the overall volatility.