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Monday, July 31, 2006

BRZ selling itself

There are rumours around that the BRZ may be selling off some of its operations in an effort to streamline costs. There is also a rumour that the whole business could be sold to private equity buyers.

This is a very interesting thing to look at in the context of BRZ. It currently is great value for any buyer as most of its businesses are producing good profits over the christmas periods. Why they would be selling the business before the best part of the year is a loss to me.

But this is good for investors who have bought recently. It should hold the company stock price at the current level with speculation of a buyout. It should go for better terms then then current share price as well which would be a boost to any recent buyers.

But it is a poor outcome for anyone who held the company from its highs. They will not be able to recover thier losses if it gets bought out.

Well I guess its a wait and see approach but hopefully BRZ will not be selling its most profitable businesses such as BNT and Diva.

Annual Rerport is out in 4 weeks so lets see the figures before we decide whether to hold or exit the stock.

Good Luck

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