my post of a few days ago puts some numbers around the process:
At the full 14% discount (which will be the final price) the buy back has differing benefits for investors with different tax situations. Assuming a market price of $25.00, the buy back would be at $21.50. For a super fund in the pension phase the return would be $2.10 capital, $19.40 full franked dividend AND $8.31 refund of franking credits (when the funds tax return is lodged), giving a total return of $29.81. Tax paying investors would need to consider the value of the (potential) $19.40 capital loss to determine whether this would offset the lower-than-market sale price. These type of buy backs are extremely popular - hence only about 15%-30% of shares tendered will be accepted. ........................................ Problem with tendering and then buying back before the closing date is that youwill not know the number of shares that will be accepted.
BHP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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