trading strategy- thoughts?, page-5

Adding spark
http://business.smh.com.au/business/love-is-in-the-air-but-emeco-remains-blushingly-coy-20090812-eic8.html?page=-1

With external management structures now out of fashion, there is speculation Spark Infrastructure could follow its peers Babcock & Brown and Macquarie Bank and internalise its management.

In what could be a precursor, Spark recently started posting a daily update on ''notional performance fees'' on its website. Since its share price has been falling in recent weeks, there is now a $230.9 million fee deficit, meaning no fee is payable.

Merrill Lynch estimates it would cost Spark $50 million to buy the management rights from Cheung Kong Infrastructure and Deutsche Asset Management, plus another $3 million a year of management costs from that point. That compares to Merrill Lynch's $130 million net present value of the management costs.

The benefits would include no exposure to performance fees, the unlocking of a potential takeover premium, and a widening of the investor base since some institutions are barred from investing due to the management structure.