Hi all,He would make a 2 billion deal with Rufrano to take a 50%...

Hi all,

He would make a 2 billion deal with Rufrano to take a 50% stake in 1 billion worth of properties within 10% of existing book value, and 1 billion of hybrid securities convertable to CNP shares after 5 years. He would have the right to take the remaining 50% of the properties instead but only if the CNP shares would be worth less than the properties as the condition of the hybrid securites.

Buffet is offered a 15% issue of shares at a 10% discount to existing prices as a reward for his foresight. CNP shareholders dont begrusge this given the change in ratios AND price of their shares. In return CNP retains management rights to all properties for the 5 years at a minimum.

It satifies Buffets tests - simple business, ongoing demand and virtually recession proof, he obtains great assets very cheaply overall. The LVR ratio would change immediately and the 3% penalty interest would also disappear and CNP becomes strongly cash flow positive overnight. Bingo CNP opens at 60 cents next day and steadily heads back to > $1.00 as the earnings for CNP under this new structure sink in.

Blastoff