Although Babcock & Brown won the much sought after RBS asset, Angel Trains for £3.6bn, it is still experiencing the challenge of investors dumping their shares in the Australian finance house B&Bs shares dropped 24 per cent on a series of broker downgrades and speculation that some of its big investors were receiving margin calls, the Australian Associated Press reported
Although Babcock & Brown won the
much sought after RBS asset, Angel Trains for £3.6bn, it is still
experiencing the challenge of investors dumping their shares in the
Australian finance house.
B&B’s shares dropped 24 per cent on a series of broker
downgrades and speculation that some of its big investors were
receiving margin calls, the Australian Associated Press
reported. Evidently, the deal with RBS has not inspired much
confidence.
AAP added that Merrill Lynch even called for B&B to
sack key executives to regain market confidence. Citigroup also
downgraded B&B to a ‘speculative’ risk rating after the review
option was triggered on June 12 when B&B’s market
capitalisation fell under $2.5bn.
B&B arranged the financing for and advised the consortium,
which included B&B European Infrastructure Fund, AMP Capital
Investors and Deutsche Bank, on the Angel Trains deal.
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