RE:RE:RE:RE:RE:RE:RE:RE:RE:AIM.PR.CI think if they announced both actions at the same time, there would not be a market manipulation claim available. The disappointment of the dividend cut would impact pricing to the downside, but the announcement of the SIB would mitigate if not entirely offset that.
Defering the pref divds until a better time (until an asset sale can be achieved, hopefully within 18 months), and buying back at least some of the prefs instead during the interim, is simply maximizing intrinsic value per share through smart capital allocation. Like when some company's reduce or eliminate their common dividend, and announce a stock buyback instead (when the stock is cheap enough to warrant it). It's not manipulative if it's fully diclosed and entirely voluntary.
Those pref holders who don't sell would benefit from the enhance value of the estate that remains to better service the pref dividend obligations for those who held.
If Aimia had done what they said they were going to do and they bought Canadian and/or US companies generating cash flow available to the holdco, I would likely oppose buying back the preferreds as perpetual preferred equity is really equity and without the 40% tax (which is deductible against Canadian income) it was pretty cheap equity. Not so much now, which is why I think buying back some while we wait and see on the asset sales might be the right balancing act.
Given the recent weakness in pref market prices, it seems likely they are anticipatiing that already. I mean, what is the argument to continue to pay the prefs in the absense of any cash inflows with which to do so? To not make them mad? It's not like we're issuing any more.