Much of it is nonsense. From the fight back and recovery stories to the statement’s from within Centro to elderly and mums & dads shareholders that the company would one day reap rewards – yeah sure thing!
However, Bloomberg is now speculating that ‘seeking to sell 588 shopping centers in the U.S’ have suddenly received ‘at least three bids of $9 billion or more for the assets’.
And the source of this report by Bloomberg, ‘people with knowledge of the matter’.
No not pixies down the bottom of the garden, or those elfish type people I mingle with at the local grocers but ‘people with knowledge of the matter’.
One must wonder that this report in reputable Bloomberg is more spin from inside the Centro camp or a factual report of real interest?
The so-called offers come hot on the heels of the two Centro’s – CNP and CER – reporting their half year survival just last week.
Says Bloomberg: “The offers were from Blackstone Group LP; a group comprising Morgan Stanley, Starwood Capital Group LLC and Paulson & Co.; and a team of NRDC Equity Partners LLC and AREA Property Partners.”
“…according to the people, who asked not to be identified because the bidding is private,” says Bloomberg reporters.
A spokesman for Centro, Adam Soffer, naturally, declined to comment.
Scoff, as you might, laugh as you will, but Centro does have a lush portfolio that the lads at Centro would love to off load to relieve themselves of debt.
As CEO Robert Tsensin admits – as he would – Centro “significant financial and operational challenges” from its capital structure and foreign exchange and interest rate movements.
An understatement of the greatest proportions.
One cannot help but be more than cynical of reports based on faceless people in a week that Centro admits it has its back firmly planted against the wall, but in the same breath believes it has a future.
And, as for the elderly investors and mums & dad investors who staked their futures on Centro shares… well, they lose no matter who buys the Centro portfolios.
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