Ann: Estimated Scheme Consideration Update, page-21

I don’t think the WIC portfolio will exist in its current form anywhere in a WAM portfolio. I think it’s a case of Franking credits, discounts within NTAs, SP premiums to NTA etc etc. Don’t forget it’s an equity swap btw WIC and WAM, but the significant holders in WIC and OZG is Euroz and they (if things are a straight swap) get WAM instead of cash. Why would a fund manager who has been extremely successful, want to swap equity in another fund run by another fund manager ? Sooner or later they will want cash, or an out,, and by holding a significant number of WAM, they are going to have difficulty getting out of WAM and finding enough buyers for their WAM holdings to get cash. I will take the WAM shares only because of the dividend offers by WAM, and the Franking credits for my SMSF, but will reduce my holdings after. Now just imagine if EZL want to do the same thing, there will be a huge number of WAM shares looking for a buyer. With the % premiums to NTA stipulated for both parties, it’s not absolutely clear for WIC SH, especially with so many mining shares in WIC, that WAM doesn’t usually invest in. I am implying that it is a share fund swap, rather than a takeover, especially as WIC has been performing better than WAM. More to come I’m sure.