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Bob, I don't like the deal. A 20% buyback is nice, but wasting money at a 5% discount when they could and definitely should buy in the market at a 20% discount is basically throwing YOUR money down a hole to the tune of 15%. So, my guess is, you will tender and probably get 25% of your shares taken at the premium price. Everyone will tender with the exception of some permanently static accounts (bank trust, estate executors, etc.). So, that 25% goes at a premium, but the 75% of your holdings that doesn't get taken will likely go back to a discount far below the current 20%, as some of that money has basically been burnt up. And, with 20% of shares in mgt. hands, it will be tough for shareholders to exert as much pressure in the future. So, if you like the fund longer term, tender your shares. But don't buy more on the tender offer, is my recommendation. |
