Falling io price to encourage another bidder....???, page-10

Bad,

You could be right.

But with the io price as it is, i'm betting bci will also take a 'wait and see' approach to bucklands - Bci's dividends will see to this.

During the broker phone hookup following the ioh purchase announcement, bci's CEO was specifically asked about bci's dividend aspirations. He was asked something along the lines of -

'...will you be tempted to ‘park’ bucklands to maintain bci divvy over next year/two and look to maximise benefit from (...ioh cash plus) bucklands with a (future, cheaper) rail deal utilising ankatell. Response was along the lines of “One of many possible scenarios we will consider…”

With the io price this low, and pressure on bci to at least maintain current dividends following this acquisition, I can't help but seeing the above proposal becoming fact. It's one of the reasons i'm worried about this deal - a company that is now ultimately more concerned with paying dividends to shareholders than seeing bucklands developed asap.

Imo, it will certainly push the 'combined bci/ioh' to being, at the very least, a 'long term buy' stock.

Cheers,
Mac



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