Post by
bbzzzz on Apr 06, 2021 3:01pm
Market seems undecided as per the value of Bpy day to day so
one has to decide what your objectives are with your future investment goals in regard to this proposal to take BPY private via BAM . I believe there is confusion since the proration aspect of this deals leaves uncertainity of division between Bam Shares , cash and preferreds .
In a tax free account , if one believes in a future with Bam it may be better off to sell the Bpy shares and buy Bam - participate fully with Bam - that would have been profitable if done a few days ago !! If you believe in Bpy you may participate in it by owning Bam .
By waiting it out it seems you will be subject to the proration division of Bpy shares ( i feel it is not proper for Brookfield mgt. to have this proration ) which may land one with X % of Bam shares , Y% of cash and some preferreds to top it off . A mixed bag of oddlot marbles . Does that fit into your investment horizon ?
Note for example - If one would have sold BPY on Thursday April 1st and bought Bam shares the same day , you would now ( april 6th ) be up over a dollar a share on Bam but the share price on Bpy is relatively unchanged .
I invite discussion thanks for listening ,
ted
Comment by
my2pennies on Apr 06, 2021 6:57pm
My crystal ball says the final mixed bag of assets the remaining BPY shareholders will get will be worth 18.25 USD. I was thinking the final cash offer part would come in at 18.15 USD so was 2 cents off. Gonna come back to this thread after the deal actually closes in the 3rd quarter to see how close (or completely wrong ) I was. Cheers, and happy divesting.