I don't think it's anything to worry about. The buy-back will...

I don't think it's anything to worry about. The buy-back will almost certainly be approved IMO, so in the next few months WPL is suddenly going to find itself with about 10% fewer shares on the register. Earnings, dividends and yield will all go up 10%, and WPL has confirmed they will continue paying out 80% of underlying earnings, which will be substantial, with Pluto chugging along and this Iraq stuff going on which has given a (small) boost to the oil price. WPL's LNG contracts are still oil-linked so I think earnings may surprise slightly to the upside anyway, even before the buy-back takes effect.

In addition, the overhang is now gone, and regardless of whether you think this makes WPL a takeover target, it certainly doesn't make them LESS of a target - it is either positive or has no effect.

So I think in the next few weeks to months, we'll see the SP trend up to make back that 5% and then up at least another 5%, possibly 10%. Trailing yield is now 6.6% as of yesterday's close (including one special div), which after the buy-back will be 7.2% fully franked - absolutely insane yield for a blue chip oiler.

Even without the special div it's 5.6% post buy-back. With 80% payout ratio going forward I don't really see WPL staying at these levels going forward.