BA-Merrill Lynch 29/10/2009 1 Buy, High Risk $0.70 19.7%Goodman...

BA-Merrill Lynch 29/10/2009 1 Buy, High Risk $0.70 19.7%
Goodman initially established a 9.4% stake in ING Industrial ((IIF)) for what the broker assumed was a takeover springboard. Surprisingly however, GMG has declined participation in the IIF raising, implying dilution down to 4.7%.

Clearly GMG believes there are better investments elsewhere for the time being, given IIF issues which remain unresolved. But the broker maintains even 4.7% provides optionality for some action later down the track.

GMG continues to trade at a 15% discount to peers when the broker believes it should be in line.