Ann: Revised Proposal from Albemarle, page-512

"If, for example, BHP offered me XXX BHP shares in a friendly takeover for my LTR shares, I would not have a sales process but only a conversion and would therefore not have to pay any profit tax."

This is gonna hurt me more that you. Ouch.

1) Never had a script component offer, but if it were just script (BHP shares) for script (LTR shares), then I would imagine no change in tax position and any dividend would be tax free if fully franked. HOWEVER, I am NOT a tax accountant.

2) If it were a cash plus script offer, then I would imagine that there may be tax on the cash component IF a) expenses and b) credits did not cover the liability.

a) expenses are whatever it cost you to purchase and maintain the disposed holding

b) credits for example are tax offsets for past losses (I have over seventy thousand credits that I can apply on capital gains before I have to look at a tax liability)

DO NOT RELY ON FOR TAX PURPOSES AND DO NOT TELL THE ATO I TOLD YOU HOW TO MANAGE YOUR AFFAIRS!