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Strategies & Market Trends : Buffettology

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To: Freedom Fighter who wrote (2635)8/5/2000 1:16:36 AM
From: Moominoid  Read Replies (1) of 4691
 
I figure the biggest gain is big tax savings. They only pay tax once on the earnings rather than the takeover target paying corporation tax and then the stock owner paying capital gains tax and income tax on dividends or for a corporation holding a stake in a company, two rounds of corporation tax. Or am I wrong on that. In Australia this tax incentive is much weakened and you see relatively few domestic takeovers. Most takeovers are foreign purchases of Australian corporations or takeovers by Australian corporations of foreign subsidiaries when the foreign owner decides to sell up or takeovers of foreign companies by Australian corporations.

David
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