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Re: Re: [sharechat] A stocktake on STU

From:	"terry weston" <tweston@sympatico.ca>
Date:	Thu, 17 Oct 2002 14:07:57 -0400

<<<<<<<The annoying thing is they could obtain the same increase in ROE by
just paying the excess capital back to the shareholders in the form
of a special dividend. So WHY DIDN'T THEY DO IT!>>>>>>>>>>

Hi Snoopy I guess the obvious reason is that the special dividend would be taxable to the shareholder.

Whereas a buyback returns capital in a cost/tax effective manner for the buy/hold shareholder. The brokers would also make a little pocket money.

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Re: [sharechat] A stocktake on STU tennyson@caverock.net.nz

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