With numerous companies, including AMP, Lend Lease and Stockland, running the ruler over the Babcock & Brown satellite, Prime Trust has issued a subtle reminder of the relationship it already has with the object of its affection.
The two companies have a number of long-term management agreements in place, whereby 25 of the 56 retirement villages run by BBC are actually owned by Prime.
``Some of the management agreements are subject to assignment conditions in the event that BBC is acquired by a third party,'' Prime Trust has declared. ``Prime Trust is reserving its position if the BBC price discovery process results in a third party seeking to acquire BBC.''
That basically means that if AMP, Lend Lease or Stockland were to trump the bid with a higher offer, Prime Trust has the power to take back the rights to manage its own villages.
That revelation had the bidders' due diligence teams, as well as BCC's adviser ABN AMRO, reaching for their calculators in a bid to ascertain how much the company is really worth.
PTN Price at posting:
49.0¢ Sentiment: Hold Disclosure: Held
