My comment on FBD Holdings buying Fairfax's €70m Convertible loan for €86m

Point 1 - This is only good news if you want to see FBD Holdings remain independent. Fairfax will not now become a major shareholder on converting the loan, meaning that they will not now either be a positive influence for getting improvements, nor will they be a takeover predator.

Point 2. Without the possible takeover threat that Fairfax would have posed, Holdings is now free to make obviously foolish decisions, like the "no nonsense" debacle, without a 'big brother' looking in and checking up on the wisdom of management decisions. Fairfax becoming a major holder would have injected discipline.

Point 3. As there is now no chance of Fairfax mounting a takeover, all premium that such a possibility might have brought will disappear. I think it will cost shareholders, including Developments, dearly, and lead to a decline in the shareprice of Holdings, and less value per share for Developments.

Point 4. In order to do this buyout, Holdings have borrowed 50m, via an unsecured 5% Loan Note, which Developments has taken 20m of. ( The trust also took €13m )
Developments has increased it's debt load yet again, to yet again bail out Holdings