Battered property group Centro Properties (CNP) reclaimed some lost ground on Wednesday rising as much as 85% on the back of speculation of a possible takeover.
Shares were trading at $1.26 as of 11.51am AEST, more than double yesterday's all-time low of 42 cents.
However, this is still a fair way below the $6 mark it was trading around before the four market releases to the stock exchange which caused a mass exodus.
Centro is yet another casualty of the US subprime train wreckage, falling to a three year low on Monday after downgrading its earnings forecast for financial year 2008 and declining to pay a first half year distribution.
It is currently negotiating the refinancing of $1.3 billion and has interest in joint venture debt refinancing of $1.4 billion.
Speculation is rife in the market of a possible takeover from competitors such as Westfields or Mirvac, but nothing is expected to eventuate until the February 2008, the deadline Centro has until to refinance the debt.
In a note to the stock exchange, Centro Properties reassured the market about its refinancing options.
"In refinancing the short term maturing facilities and ultimately reducing the gearing of the group, Centro has a number of options available to it including sale of interest in managed funds, joint venture of assets, asset sales and/or equity issuance."
"Centro is not obliged to take any specific course of action over the next eight weeks. What is required is the development of a strategic plan or road map to successfully operate the group on an ongoing basis."
Centro said if it decides on sales of assets, whether in Australia or the US, it will look selectively divesting assets that will allow it to repay short term while at the same time preserving security holder value.
