Babcock to raise A$300 million

SYDNEY - Australian investment and advisory company Babcock and Brown is expected to raise about A$300 million through an institutional share placement, say sources familiar with the deal.

Babcock & Brown shares were placed on trading halt earlier in the day to complete the placement. The shares last traded at A$19.70, and the offer is seen at a discount of between 5 and 10 per cent to the last traded price.

In the past month Babcock has acquired a 5.6 per cent stake in energy retailer Alinta and took a small stake in New Zealand's top listed stock, Telecom.

Last month, the company reported a 48 per cent rise in first-half profit on strong fee income.

- REUTERS