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Babcock and Brown receives a lifeline.

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RN PM Babcock and Brown receives a lifeline


Babcock and Brown receives a lifeline

PM - Thursday, 4 December , 2008 18:58:00

Reporter: Brigid Glanville

MARK COLVIN: And finally to business and finance with Brigid Glanville.


It was a mixed day on the share market today, and at the close of trade the All Ordinaries finished just eight points lower.

Embattled investment bank Babcock and Brown received a lifeline today with a $150-million loan from its lenders.

This will give Babcock more time to sell assets and boost its chances of repaying more than $3-billion worth of debt.

The news boosted Babcock's shares surging 56 per cent to 39 cents.

Babcock and Brown isn't the only company renegotiating debt. Agri-chemical company Nufarm refinanced $1.4-billion of loans after talks with its bankers. The company also borrowed another $400-million.

Nufarm's share prices jumped 12.5 per cent today to $8.50.

Media reports of Macquarie sacking 100 investment bankers didn't dent the share price today it rose 2.6 per cent to $28.30.

The major banks all closed higher. The National rose the most by 4.6 per cent to $19.46.

Ever since BHP Billiton pulled out of its bid for Rio Tinto, Rio's share price has struggled after falling 34 per cent. Today it continued that downfall, dropping another 11.6 per cent to $32.50.

BHP lost one per cent.

In economic news home building approvals in October dropped to the lowest level since 2001.

The number of permits granted to build or renovate houses and apartments fell 5.4 per cent from September.

The ASX200 finished one point lower at 3,532.

Gold is fetching $US767 an ounce.

Oil is down again with fears of falling demand. It's worth $US46 a barrel.

And the Australian dollar is trading at 64.4 US cents.

MARK COLVIN: Brigid Glanville thank you very much.

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