Lend Lease Wins BBC but Drops the Price

While parts of the transaction have to be approved by security holders at the AGM (rescheduled for 30 December!), Lend lease has effectively won control of BBC. With the deteriorating market Lend Lease has negotiated the price per unit down in part in return for offering a greater injection of cash, by $25 million. At first blush it seems like a ‘pressure’ renegotiation but Lend Lease is still paying $0.60 per security (down from $0.68) compared to yesterday’s rate of $0.17. On Monday Lend Lease in effect took over the management of BBC by part paying BBC’s Godmother Babcock & Brown for the management rights. Lend lease immediately announced a new CEO and CFO. (See following story). Prime Trust has been effectively cut out of the deal; their offer to security holders closes tonight. They claim to have won 616 investors over, representing 1.44% of the bid class securities.