Ann: December 2012 Profit Upgrade , page-7

Debdeb,

I'm not sure divesting the Brazilian business is that easy...besides the fact that the market for parties who might seek to buy this sort of highly-specialised distributorship is probably not that liquid or deep, even if this business was profitable.

Being loss-making takes an already tough divestment brief and makes it almost impossible.

And there would be all sorts of licensing and intellectual property issues.

I think that what they are trying to do is to address the cost base of that business in order to compete with local manufacturers.

I agree with this strategy being the best one in terms of shareholder value creation (or, at least, ceasing shareholder value destruction).

Remember that Brazil represents 10% of total group revenues, so even if they get that half right, the upside is significant.

Cam