Macquarie Bank has revised its valuation of ABS:"ABS value of...

Macquarie Bank has revised its valuation of ABS:

"ABS value of $2.40-2.70 per share if deal goes ahead. If we assume ABS's US business is worth A$842m (US$775m), the Australian/NZ centre business is worth $1.6bn (financial year 2008e earnings before interest, tax, depreciation and amortisation of $200m at 8x - material discount for uncertainty), the UK business is worth what ABS paid at about A$240m and property sales of $125m excluding UK can be executed, then ABS can be valued at about $2.40+ after subtracting $1.67bn of debt.

Upgrade to Neutral (previous Underperform). The financial risk of ABC remains high under the current structure, but the share price should stabilise if the proposed deal is perceived to be going ahead."