Business is locking in a Labor win
Chanticleer describing itself as ‘is Australia’s pre-eminent business column’, claims that:
“When Fortescue Metals Group joined Westpac Banking Corp in pulling forward dividends to beat Labor’s June 30 franking credit reforms, it was a sure sign big business thinks there will be a change of federal government on Saturday.
Paying dividends doesn’t mean they *expect* a Labor win. If Labor DOESN’T win, shareholders haven’t lost anything by the action.
FMG founder Andrew Forrest surprised the market by declaring a ‘special’ second-half dividend of 60¢ a share, payable on June 24. This is a smart strategic move because it means FMG shareholders hit by Labor’s changes can get the fully franked dividends before the law changes”.
Very little surprises the market. In particular, Labor’s reintroduction of double-taxation couldn’t possibly have ‘surprised the market’. Not even Keating’s support for bad tax policy – against his original good sense would surprise the market – Keating is tribal.
Source: AFR.com
With commentary like this, no wonder sales have slipped:2009: Fin Review hammered as newspaper sales slip
Source: ABC News