Ann: Westpac announces $3.5 billion off-market share buy-back, page-879

The advantage of tendering a higher discount is only to get the tender accepted. The final discount will be decided by Westpac so that they could successfully get the buyback done to get $3.5 billion spent. Everyone whose tender is accepted will get paid the same buyback price regardless of whether their discount offer is greater than the discount Westpac decides.

If everyone put in a 0% discount then Westpac will have to accept this. The question is whether people will do this. I don't know if there are big funds out there that could afford to buy a lot of replacement shares under 21 and tender all their shares into this buyback at a discount > 0%. If Westpac does not get enough for $3.5 billion they will have to lower the discount to the point where they get $3.5. If they cannot get $3.5 billion spent, then the discount will be effectively at 0% and then they will have to buy more on the market. This is what I hope will happen.