Brookfield Office Properties Inc T.BPO.PR.A

RE:$25/share for Prefers Redemption vs Commons (buyout)

[pierrelebel]

To understand Brookfield, one should study the career of Jack Gallagher, the former chairman of Dome Petroleum.  Jack believed in "OPM" (other people's money) and built Dome Petroleum accordingly (until it almost broke the Canadian banking system in 1982).

Brookfield constantly goes after other people's money to build its empire. Redemption of preferred shares does not fit their long term plans. 

They do not care if the preferred shares trade at 30%, 50% or 70% of par as this is totally irrelevant to Brookfield. They are always looking for more money to build a larger empire, not to save a few dollars in dividends on preferred shares issued years earlier.