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13:40
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Originally posted by ConnerEx:
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I think the relevant date is 20th Dec if the votes go ahead. This will be a once and only time to receive Newco shares in lieu of ASX CDIs. Don't underestimate the inconvenience of CDIs as opposed to owning shares on the ASX. You get no franking and subject to exchange rate risk etc. If the deal was more attractive, with a dividend component, then maybe ok. The winners have been those that sold in the days after the announcement. Seems to always work that way. When stayers get into the detail the sell off begins. I feel a greater sell off is in store once the CDIs listed on the ASX as large instos will rebalance and may "have to" lighten up on Newco in the US which will automatically flow through to the CDIs next day. In other words the NYSE Newco performance on any particular day will normally reflect how the CDIs perform on the ASX next day, adjusted for exchange.
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don’t you risk exchange by holding any stock on OS markets? Also how does having dividends help more than having the sp grow? You’ve raised good points but I feel your explanation is creating a lot of fear especially in a volatile time.
