Mr B,Privatising is a possibility. Then dressing it up and...

Mr B,

Privatising is a possibility.

Then dressing it up and putting it into a Custodial managed trust is a possibility. If this is the plan then expect to see it held under water for a few more months then maybe an offer to existing shareholders to take units in the trust in a swap for equity that will hold this and other good looking but none the less toxic assets. Maybe throw in a few divisions of ERG and make a Technology fund/trust?

Custodial and it's associated entities do have excellent experience in this area. It would be a hell of a lot easier to sell units in a trust that holds a mixed bag of blue sky assets than focusing potential shareholder attention on a specific toxic asset like Freshtel. Custodial also have access to a large base of private clients that will consider these types of investments.

Freshtel shareholders, if offered this opportunity to participate in taking units in an equity swap would be well advised to jump on board IMHO.

I do not know the mechanics of how these things work so I could be way off the mark, I am just talking in general terms.