RE:RE:BAM acting like the FedCapharnaum wrote: Desto44 wrote:
By declaring a $12USD bid for a substantial chunk of shares BAM took a page straight from the Fed. They've essentially created a price floor to ensure liquidity during a time of illiquid price volatility. When the Fed first announced their market facilities it took a few days for the market to digest the vastness of their intervention. I think the same is happening here. Considering BPY has a huge outstanding short position the pressure to the upside must be pretty strong. Oddly enough just as with the Fed, this could be one of those self fulfilling price moves associated with money waiting on the sidelined to get in and just needing that vote of security/support in order to start the ball rolling. Either way, it's a brilliant move by BAM management and sends a serious message to short selling speculators going forward. Don't mess with Brookfield.
It's a neat move for BAM, they get assets at half value. For the shareholders, while it's higher than currently depressed share price, it's still low in value. Imo they should have went for a higher premium.
I really think this was aimed at burning the short sellers and I expect they don't believe they will get many bites at 12USD. The reason they didn't bid higher is because the goal here isn't to take BPY private, it's to stabilize the share price and support shareholders. At least that's what I believe based on the price, the size, the timing and what was said in the last quarterly call.