Subject:
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Coles Myer shareholder discounts -- finally the new rules are announced
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Newsgroups:
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lugnet.loc.au
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Date:
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Thu, 19 Jul 2001 23:32:57 GMT
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Viewed:
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213 times
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Read all about the new scheme at:
http://au.dailynews.yahoo.com/headlines/20010719/aapbusiness/995539544-37586
53482.html
The good news for existing (as at some date last year) shareholders is that
there is effectively no change for you. Indeed, as your first 500 shares are
now a special separate category of shares, one can even hope that they will
trade at a premium to regular shares, making them more valuable in the event
of an eventual sale.
But why would you sell them at all? For newcomers wanting the discounts,
they must buy 500 of these discount-capable shares (presumably at a premium
to the cost of regular shares) plus pay $25 out of your dividends every 6
months for the privilege. So, being an ongoing shareholder has a lot of
benefits compared with selling and later rebuying the same shares. I'll be
hanging onto my shares like glue!
Frankly, I am amazed at the complexity of the new scheme. Making the shares
involved a different class of share seems a very complicated way to go about
it. I would have thought they could have introduced the $25 fee for new
shareholders without having two classes of share (they could have called it
a service fee for issuing the new card). Obviously, having two classes of
share limits the total number of shareholder cards that can ever exist to
the current allocation of 580,000, but surely there wasn't scope for too
much more growth anyway. How many Australian households are there? And how
many own shares anyway? And how many of them shop at other stores (and hence
don't want the discount cards anyway)?
Kerry
--
============
Kerry Raymond
kerry@dstc.edu.au
Proud to be LUGNET Member 599
www.lugnet.com/people/members/?m=599
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