Anyone here want to speculate that if Downer needs to raise...

Anyone here want to speculate that if Downer needs to raise money through a rights issue/placement/share purchase plan what would be the price and what the amount would be?

Usually these will be done at a 15-20% market price discount from my experience. I have to admit that the last placement I took up was Reed Resources (RDR) so maybe I am comparing a spec stock to Downer would be unfair.

The provision for the Railcorp deal seems to be $350million by the time the saga ends (I am expecting more write-downs in the next 6-12 months since management has proven to be incompetent). There may be other smaller write-downs on the cards? I think Downer would need to raise in the range of $400-$450million.

Downer debt is also very very high compared to the industry and its equity. Then again the share price was $8+ not too long ago so the equity side has more than halved in value.

Anyone think that this could lead to a takeover by a predator taking advantage of DOW weakness?

I am thinking to buy some DOW for the long term but only after they clarify the capital raising issue that seems to be in the media of late.