CNP - Centro Properties Group

Aussie2Aussie · 7 March 2008

ProRip said:
.......would it be a good time to do a 50/50 investment on each stock so that if one loses the other should cover any financial loss?

No way, you would still be risking the lot.

Never ceases to amaze me how despite the fact that these shares reach new lows week after week and at the same time more and more bad news piles up yet people still think that they can pick when it has bottomed.

The bottom probably is 0.0c.

nioka · 7 March 2008

ghostworld said:
The major reasons for the fall in SP was due to several brokers putting a 'Sell' rating on CNP. .

That is as good a reason as any to buy. They get it wrong more than I do and I'm often wrong. I'll hold any way. As they say "in for a penny, in for a pound". They are just covering their backsides, if they say buy and it falls they get a lot of flack.

ricky0252003 · 10 March 2008

Weak Fri always lead to a weak Mon. US market is down badly, so Monday is expected to be down unless new announcement is made.

ricky0252003 · 10 March 2008

Those who've got guts should call the price now. I think .31 is the lowest CNP can go before 30 Apr.

moneymajix · 10 March 2008

Re: CNP - Centro Properties Group UP

33.5c, up 8%

From AFR, 10th March 2008
p20,Street Talk

The deep-pocketed Abu Dhabi Investment Authority (ADIA) has been thrown up as a potential saviour of the Centro Properties Group as the ailing trust seeks to secure a bail-out by the end of next month.
Street Talk previously outed Mirvac Group as a player in the impending transaction and others like Stockland and Macquarie Group could have more than a passing interest.
Centro has debts of $3.9bn to be refinanced as part of a recapitalisation due by April 30 and is being advised by Lazard Carnegie Wylie.
ADIA has been making its presence felt in global markets, particularly when it comes to distressed companies requiring an injection of capital, for example its $US7.5bn ($8.1bn) investment in US bank Citigroup.
The sovereign fund has been looking at buying property in Brisbane and is said to be on the lookout for an office block in Sydney. In January the fund spent $156.5 million on a 19.9 per cent stake in New Zealand-listed AMP New Zealand Office Trust.

ricky0252003 · 10 March 2008

Bought more at .32. Don't know if I made a stupid decision or not. Hopefully it's not another bear trap.

nioka · 10 March 2008

ricky0252003 said:
Those who've got guts should call the price now. I think .31 is the lowest CNP can go before 30 Apr.

I doubt that it needs intestinal fortitude to call a price,unless you mean that by calling a price you may get a well deserved caution from the mods. Price today only matters to those needing to sell and for traders. What matters is what the price will be at the end of April. I'm continuing to hold as I think that the current management will get this one back on track. (unless they have huge margin loans as per Eddy Groves). But then if they did they would have been called in long before now.

ricky0252003 · 10 March 2008

According to AFR, PPI tries to raid CNP by taking over the management of Centro MCS. However CNP owns 28% of the stakes. In order to successfully get control over Centro MCS, PPI needs a vote that is greater than 75%. PPI and CNP may appear in court in the coming weeks. PPI will argue the conflict of interest and CNP should not be able to vote on the units. Whereas, CNP will argue the units are technically owned by the Diversified Property Fund, which has a right to vote.

Anyone got any idea or expectation in regard to the outcome. I consulted one of my lawyer friends in brisy. I was told there's a 50/50 chance.

ghostworld · 10 March 2008

ricky0252003 said:
According to AFR, PPI tries to raid CNP by taking over the management of Centro MCS. However CNP owns 28% of the stakes. In order to successfully get control over Centro MCS, PPI needs a vote that is greater than 75%. PPI and CNP may appear in court in the coming weeks. PPI will argue the conflict of interest and CNP should not be able to vote on the units. Whereas, CNP will argue the units are technically owned by the Diversified Property Fund, which has a right to vote.

Anyone got any idea or expectation in regard to the outcome. I consulted one of my lawyer friends in brisy. I was told there's a 50/50 chance.

They are dreaming if they think that they can stop Centro from voting. If it were that easy to take control of management rights, then you would see much bigger players doing what Pelorus is attempting to do now. You may as well kiss goodbye to all current management models. ie. Macquarie, Babcock and Brown, etc etc.

Quixis · 11 March 2008

Re: CNP - Centro Properties Group UP

moneymajix said:
33.5c, up 8%

From AFR, 10th March 2008
p20,Street Talk

The deep-pocketed Abu Dhabi Investment Authority (ADIA) has been thrown up as a potential saviour of the Centro Properties Group as the ailing trust seeks to secure a bail-out by the end of next month.

And my grand mother's church group is another being thrown up as a potential saviour.

Then there's Santa of course also.

Stick to the facts, not a journo's rubbish imo.

moneymajix · 11 March 2008

Re: CNP - Media

Q

Quote:
Originally Posted by moneymajix
33.5c, up 8%

From AFR, 10th March 2008
p20,Street Talk

The deep-pocketed Abu Dhabi Investment Authority (ADIA) has been thrown up as a potential saviour of the Centro Properties Group as the ailing trust seeks to secure a bail-out by the end of next month.

And my grand mother's church group is another being thrown up as a potential saviour.

Then there's Santa of course also.

Stick to the facts, not a journo's rubbish imo.

If you believe the journalist is being misleading then maybe you might like to contact one or all of the following:
AFR,
ASIC,
the media regulator.

Good luck to your grandmum's group.

You must be a caring sort of person.

Trojax · 13 March 2008

News worthy of noting, Romano Nenna CFO (on medical leave since early Jan), has officially been replaced as CFO by Tony Clarke. (Ivan St Clair was interim, ex ernst and young partner), resolves an issue relating to credibility (same as when Scott got flicked) for potential suitors or refins. Dead wood chop IMO.

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00822376

Also Pelorus raid on MC16 shot to shat IMO by new bank finance condition on development $ that MCS retain control, unless Pelorus has a third party rabbit here they're dead in the water. Interesting the lender stipulates Centro retain control as a condition of the bucks, hedging also sorted here at the same time.

No news on CAF or CAWF, but certainly movement behind the scenes in terms of resolving secondary distractions compared to the short term refin issue.

Oh also Globus took a 5% stake in CER, relevent or not to CNP given their 50% interest will tell with time.

ricky0252003 · 16 March 2008

Another investment bank in the states went bust. It will put pressure on the credit market and real estate sector. Some economist predicted 700,000 household in australia will feel the mortage pressure in June.

CNP appointed new CFO in a urgent manner "effetive today".

I think CNP will go down for another 7-8% on Monday if no announcement released

Quixis · 17 March 2008

Hi all, can someone explain what's happening with CNP.

There are continued buys being made. Figures like 4,627, 7,627 etc. Now these are bot buys and they've been happening for weeks now. Last week it was parcels of 1062, 1082.

Are these day traders do you think? Or what is the strategy happening here?

Thanks

lingqi · 17 March 2008

Here is recent news, what will happen to SP?

Centro Suitors Macquarie, Mirvac Abandon Bid Plans, Review Says

By Laura Cochrane

March 17 (Bloomberg) -- Macquarie Group Ltd., Mirvac Group and Lend Lease Corp. Ltd. are among potential suitors of Centro Properties Group who will abandon bids this week, the Australian Financial Review reported.

Centro may fail in its attempts to sell equity to new or existing shareholders and the company likely will be divided up by creditors, the newspaper said, citing a person who had examined the Melbourne-based company's books.

Blackstone Group LP also may walk away from a potential bid after saying fourth-quarter profit dropped 89 percent and Abu Dhabi Investment Authority isn't considering a bid, the newspaper said.

Centro, the owner of more than 670 U.S. malls, must refinance A$4.9 billion ($4.6 billion) of debt by April 30. Centro's banks include JPMorgan Chase & Co., BNP Paribas SA and Commonwealth Bank of Australia.

To contact the reporter on this story: Laura Cochrane in Melbourne at lcochrane3bloomberg.net.

Last Updated: March 16, 2008 19:19 EDT

vida · 17 March 2008

That is very bad news and indicates the company will fold up soon and naturally so will the SP. However this article is not an announcement by the company, its a journalist sensationalising some comment someone made to her. The article says Centro MAY fail in its attempts etc.. but we already knew it 'may' fail, this is not to say that it will fail. We have to wait to hear from Rufrano and the new CFO as to what is really going to occur.

lingqi said:
Here is recent news, what will happen to SP?

Centro Suitors Macquarie, Mirvac Abandon Bid Plans, Review Says

By Laura Cochrane

March 17 (Bloomberg) -- Macquarie Group Ltd., Mirvac Group and Lend Lease Corp. Ltd. are among potential suitors of Centro Properties Group who will abandon bids this week, the Australian Financial Review reported.

Centro may fail in its attempts to sell equity to new or existing shareholders and the company likely will be divided up by creditors, the newspaper said, citing a person who had examined the Melbourne-based company's books.

Blackstone Group LP also may walk away from a potential bid after saying fourth-quarter profit dropped 89 percent and Abu Dhabi Investment Authority isn't considering a bid, the newspaper said.

Centro, the owner of more than 670 U.S. malls, must refinance A$4.9 billion ($4.6 billion) of debt by April 30. Centro's banks include JPMorgan Chase & Co., BNP Paribas SA and Commonwealth Bank of Australia.

To contact the reporter on this story: Laura Cochrane in Melbourne at lcochrane3bloomberg.net.

Last Updated: March 16, 2008 19:19 EDT

ricky0252003 · 17 March 2008

There are rumors flying everywhere in the market these days. The reason for that is FEAR. Bear Stearn's collapse causes impact on investors' confidence to a certain extent. short-selling frequently occurs these days. It is hard to verify the credibility of any media.

vida · 17 March 2008

At least the journalist provides her email address if anyone wants to question the validity of her article. It worked on me, i cancelled my buy order topping up my existing CNP holding which is looking at 50% paper loss at present. The risk suddenly seemed too enormous to buy any more of it.

ricky0252003 said:
There are rumors flying everywhere in the market these days. The reason for that is FEAR. Bear Stearn's collapse causes impact on investors' confidence to a certain extent. short-selling frequently occurs these days. It is hard to verify the credibility of any media.

sonicwind · 17 March 2008

This may very well be true - it's been a month since the extension of the refinance deadline, if there was any interested buyer, shouldn't someone have some move by now?? Also Centro's dataroom was open a lot earlier than that.

with worsening global credit conditions and continued lack of positive announcement by centro, i am beginning to think i have taken a wrong punt, the lack of bidding means buyers want to get cheaper bargains at a fire sale.

yang · 17 March 2008

somehow I remain optimistic

what is the scenario if cnp does go bust? do shareholders have limited liability?

yang

CNP - Centro Properties Group

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