Asset sales at fire sale prices is dumb and the timing could not be worse. Unless the buyer want to pay a massive premium.
Is this what we paid the millions of dollars in fees for to JP Morgan and Moellis. We were looking for value creation and clever work not this lame severley ill timed sellout.
Wow what a revelation.
If this company was going to be put to the wall it should have been done by now. In fact maybe back in March 2009 when the financial world was coming to an end. Now when we are just starting to see some real glimmers of hope around asset values the banks are going to dump some centres on the market at crazy prices.
It will only reduce their exposure, but not resolve the fact that their customer is still sitting in a negative equity position and the only way to trade out of this is not to sell all assets for nothing but to wait through the property price cycle which now appears to be coming back.
Why dont they take a wider interest rate spread to reflect the risk represented. I see this more as banks wanting to announce larger profits as a result of less allowances on their books for bad debts than anything else.
Wrong move from where I sit.
DYOR peoples!!!
CNP Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
