SYDNEY - Investment bank Babcock & Brown says it will continue to focus on geographic expansion and in particular creating an Asian platform.
Chief executive officer Phil Green said the firm will focus on capital intensive activities, in order to grow leasing, infrastructure, and property businesses.
"We continueto look at asset classes where we can use our expertise to grow our business and grow our funds and asset management platforms, so I think the telco sector is an area where over the last couple of years we focused more and more," he told Sky News.
Mr Green said there are several possible areas in which the company could expand.
"Obviously with the team that joined us from ABN AMRO, as well as our existing team, we have strengthened our capability in PPPs (public private partnerships) and toll roads so there are a range of asset classes that we think we can expand our base," he said.
Although local interest rates could be lifted from 6.25 per cent in May and risk in debt markets has been at historical lows, pointing to a likely rise, Mr Green said Babcock was well-positioned to deal with such risks and volatility.
"I think we are well positioned in terms of our portfolio, the breadth of our business to weather any storm as well as any weakness," he said.
Just two weeks ago Babcock won over the board of energy utility Alinta, after battling with rival Macquarie Bank for the takeover target for some time.
Mr Green said the firm has always had an interest in the energy sector and had held a position with Alinta for some time.
Alinta accepted a A$7.4 billion ($8.50 billion) offer from the Babcock consortium, and is now in the process of handing over a portfolio which includes electricity and gas distribution networks, power plants, gas pipelines, a wind farm, an asset management arm and an interest in an energy retailing unit.
Mr Green said he would not be surprised if the Macquarie syndicate came back with another bid for the energy company, having already made an all-cash revised offer of A$15.45 per share.
Babcock's loyal investors, however, have not been deterred from buying up shares in Alinta.
"Some of our traditional investor base do see this as a good opportunity, taking in (to) account the franking credits and the entry point into some of core funds," Mr Green said.
Mr Green said they have likely picked up less than five per cent of Alinta shares.
