CAN DE BEERS REFINANCE WITHOUT HELP FROM ANGLO AMERICAN?
CHARLES KERNOT EVOLUTION
“Investing in De Beers would be a positive move for Anglo – there’s little opportunity to increase supply in diamonds and we are looking at a shortfall in supply over demand into 2010. As De Beers is in talks to restructure its debt, it could be that the banks want to see some outside equity injection.”
RONNIE CHOPRA FALCON SECURITIES
“De Beers needs to restructure its finances as global demand for diamonds falls, and Anglo may take full control. But with Anglo shares trebling since the March low, perhaps a more astute move would be to take over rival Xstrata. From being prey, they could become predator.”
JOHN MEYER FAIRFAX
“De Beers says it can refinance by itself, and I’m inclined to believe it. The Christmas period will be very important in measuring the speed at which it can return to profitability, but people continue to be romantic, and keep getting engaged, so the principle driver for diamond-buying is still there.”