No ex div date yet until the final results are out in...

No ex div date yet until the final results are out in November.

The following figures are interesting:
SGB closed today at $31.89 and WBC at $24.58
If one holds 1,000 WBC shares and sells the WBC shares to buy SGB shares, this will be the position:

Sale of 1,000 WBC shares = 1000 x $24.58 – broker fee (say $30.00) = $24,550
Buy 768 SGB shares: = 768 x $31.89 + broker fee = $24,521.52 costs
Keep change in the pocket: $28.48


In November:
SGB final dividend + special dividend = $1.25 maximum
Therefore 768 shares = $960.00 (fully franked)
On merger: 768 SGB shares x 1.31 = 1006 WBC shares

IF holding 1000 WBC shares:
November final dividend say $0.72 per share = $720.00 (fully franked)


NETT gain in selling WBC shares & buying SGB:
Change in the pocket during buying/selling: $28.28
Dividend difference: $960 - $720 = $240.00
Additional WBC shares at merger = 1006 – 1000 = 6 WBC shares @ $24.28 = $145.68
TOTAL NETT GAIN = $28.28 + $240 + $145.68 = $413.96 =1.7% of $24,550


RISK: If merger falls over which in any case both WBC & SGB shares will fall.
Capital gains or loss realised when selling WBC shares to buy SGB.


Potential further gains:
IF major SGB shareholders refuse to accept & WBC has to further increase its offer.
IF another party makes a higher offer (unlikely but you never never say no until it is a done deal!).


Anyone out there has a view of this?