Q: The new Cetaurus announcement of a data center investment means a large capital raise for Brookfield in my opinion.What are the chances of a takeover of SPB by Brookfield as an alternative strategy?
5i Research Answer:
We have some comments posted on SPB today. We have long thought that Brookfield would be interested in SPB. It fully suits their typical acquisition. It would be about a $4B takeover if it were to occur. Brookfield could probably finance this internally, or with new debt and would not necessarily have to issue equity. Note that many have held this view for some time, and nothing is guaranteed here. Brookfield can move slowly at times.