RE:RE:RE:Bam now determines the value of Bpy via the .3979 metric .Hi again,
The reason I responded to your initial post was that I did not quite agree with your statement/position that
...."$44.75 x .3976 ( the exchange metric issued by management ) = $17.80 ( actually closed at 17.74 on Thursday )"......
ie I do not think that your calculation above is the calculation on how BPY will track BAM.
As of right now, and assuming the deal gets voted favourably, us loyal unitholders of BPY are no longer invested in a real estate company with office and malls, rather we are officially investors in a basket of (i) US$2.7 billion in cash, (2) 59.3 million BAM class A shares and (3) US$500M in some sort of preferred share we really no nothing about.
SInce this basket/deal closes sometime in the 3rd quarter and BPY will cease to exist at that point, then BPY by definition, is a short term investment and all us who own BPY today are 42% exposed to the volatility of BAM shares. For example, if BAM shoots up $5 per share by the end of next week, I would conclude BPY should shoot up around $2.10 per share.
I have made the investment decision that at US$17.74 per share, I would rather stay in new BPY vehicle for 3 months to get full value on the cash component in the deal and I am happy to be exposed to BAM in the way the definitive agreement is structured.
All the best,
Vette