yep, that's an interesting issue.VPE owns 20% of ITC.Assume...

yep, that's an interesting issue.

VPE owns 20% of ITC.
Assume Beach gets to 80%.

there are some really important issues with that situation.

1. Beach cannot compulsorily acquire the balance of the shares in ITC, until it gets to 90% of ITC.
2. getting to 100% s/h in ITC is important because it gives BPT the ability to move cash around the BPT group, and there are tax issues involved eg group losses for tax purposes.
3. BPT cannot deal with the assets of ITC willy, nilly - it cannot move ITC permits etc from one coy to another.ie from ITC to BPT coys.
4. every time BPT wants to do something with ITC or its assets, it is legally bound to operate ITC IN THE INTERESTS OF ALL ITC S/H. - and thats the kicker. so if BPT wants to shift a permit from ITC to a BPT subsidiary, it would have to get valuations etc.
5. because VPE has 20% (and there would be other non-accepting ITC s/h out there), then BPT would have to retain some independent ITC board representation to cater for the minorities.

The other HUGE issue IMHO that raises its head, is that with VPE blocking comp acquisition, BPT has to find some way of extracting those ITC shares out of VPE.

NOW - the big issue for my mind, is that it is ILLEGAL for BPT to offer VPE any consideration for their ITC shares, which is not available to ALL other remaining ITC s/h!

So will there be a deal done somehow?

cheers