The drop might have to do with BPC themselves and the fact that...

The drop might have to do with BPC themselves and the fact that after a lull of 5 to 6 years they are back on the acquisition trail.

The last time they were buying up companies like this BPC ran into some big trouble with debt, asset valuations and the likes that nearly sent them to the wall.

Were it not for Graeme Hart's poorly timed entry just before things nearly collapsed I doubt if BPC would still be around.

But now BPC has bought the South American assets of Kraft Foods, they've made a take over bid for GMF and are proposing to buy Graeme Hart's New Zealand Dairy Foods. All this in less than 6 months, and how is it all being paid for? Debt and equity. Equity being the anticipated conversion on about 700 or 800 million options which will bring another $150 million if they are all exercised.

The drop is basically because the market is getting the jitters over BPC's strategic direction, once again.

I hope, as a shareholder in BPC, that they can make their strategy work this time.

Surandy