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Market Vexes Macquarie, Babcock
June 17, 2008
By Rebecca Thurlow -
Wall Street Journal
In the latest sign of growing investor
skepticism over their business model,
Australian financial firms Macquarie
Group Ltd. and Babcock & Brown Ltd. took
steps Monday that could indicate a
further retrenchment of their funds from
public markets.
Under their complex
model, known as the Macquarie model or
the managed infrastructure model, the
two companies manage funds that own
cash-generating assets ranging from toll
roads to airports to wind farms. The
funds are debt-reliant and often
publicly traded.
But the stumbling debt markets and
concern about leverage have contributed
to share-price declines for both the
main companies and their managed ...
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