No. of Recommendations: 2
Sorry to be out of touch so much, i ahve been lurking and there have been some great discussions here lately - but work has me far too busy to add much into the discussion.

This one popped up on my screen a few weeks back and again this morning.

Anyone watching this particular issue?

Hanson is now a subsidiary of Heidelburg who had 15B Euro of revenue last year. Obviously they are tied tightly to constructio, but they are severely discounted.

Heidulburg has plans in the work to sell off assets to pay down debt and has said they will sell off units outside it's core business. I believe Hanson is part of it's core business and would likely stay with the company.

The company is selling for about $.45 on the dollar and seems like a good oppurtunity to me. The oppurtunity to get 2.2x initial investment return in 2016 plus to pickup coupons paying another 13.6% seems like a good bet to me.

There is the possibility of a sharp return to close to par if Heidulburg Cement succeeds in reorganizing it's debt.

It has sufficient cash to deal with debt maturing in 2009, and is trying to get ahead on debt going forward.

The one other big news story with this one is the suicide of it's main shareholder back in January of this year which raised a red flag about the company's financial situation.


Anyone else following this at all?

Disclosure: I've picked up $1000 worth of the 6 1/8s or '16.

Scott
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