Also EL owns a truck load of shares himself, His remuneration is based on (going from memomry, so happy to be told otherwise) returns to shareholders and share price performance (not the only triggers). I expect there will be some panic selling, and why wouldn't you. There has been people on here spruiking the massive dividend payment and people may have been lulled into buying based on that alone.
Just remember, The company is exactly the same, The money is still there and it will continually roll in every month, If they pay down debt, you will see the money a little later on, not this year but maybe the year after. It will allow them to pursue further acquistions. A companies value is not just determined by the value of dividend.
However it will be interesting to see how EL and Management handle this situation. We will see if there loyalties lie to there masters or themselves.
BJT
babcock & brown japan property trust
