Bell Potter released a research paper today suggesting some infrastructure stocks will follow Toll and internalise their debt. They will drop dividend to the level of real income, and then payout the management contract to the manager, in the case of MAp payout 10 years worth of management fee. They estimate MAps price would rise 48% from this move.
Personally I would vote against that, as I think the buyback will achieve the same result, with income matching payout expected for 2010. I think this is a way for Macquarie to generate massive oneoff payments.....not in our interest.
Kiril.
I hold.
MAP Price at posting:
$2.25 Sentiment: None Disclosure: Held
