Given the focus recently on the Schemes of BOW and ESG, it was...

Given the focus recently on the Schemes of BOW and ESG, it was interesting to look at the results of the BOW voting.

BOW Scheme received YES vote from 89% of Shareholders present and voting (ie includes proxy).

BOW Scheme received YES vote from 95% of number of shares voted at meeting or by proxy.

So how many s/h bothered to vote?

I can only work from latest A/R, but there were 8358 s/h at that date, and 352m shares on issue.

So at first blush it looks like 1396 s/h bothered to vote.

So only less than 20% of s/h actually bothered to vote!

And there were 194m shares voted.
So about 50% of the shares voted!

So it looks like the Funds who hoovered up the shares during the currency of the bid, really did have a telling effect on the results of the voting for the Scheme!

Because their buying would have greatly reduced the number of individual shareholders, and greatly concentrated the ownership of shares into the hands of those few Hedge Funds.

And that is clearly demonstrated in the voting results.
ie less than 20% of shareholders apparently voted (but reduced by selling out of s/h on-market) - but 50% of shares were voted.

To me, it begs the question - in these t/o by way of Schemes, are the buying activities of these Hedge Funds orchestrated as part of a plan? Or is it the market at work?
It seems to be part and parcel of the way these Schemes play out?

SO once the bid wwas announced, would say Arrow's Broker or Advisor run around and orchestrate Funds to enter the market and soak up small shareholdings, and play the arbitrage game?

If we look at the above reults, its pretty clear that action of these funds in soaking up the scrip, actually ENSURE that they get the right result at the Scheme meeting. So a big risk factor in their investment ie one risk being that the Scheme could possibly be voted down, is mitigated.

Thus the investment by these Funds then becomes almost Risk-free!?

Interesting stuff.

And we can be sure - there will be more of these Schemes in 2012, and the same activities of these Funds will ensue.

cheers