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DewDiligence

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DewDiligence

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Re: DewDiligence post# 8408

Monday, 05/05/2014 6:03:12 PM

Monday, May 05, 2014 6:03:12 PM

Post# of 29442
The spread between Shell’s two classes of shares (now a record 7% premium for RDS-B) has made it impractical for Shell to conduct share buybacks to offset the dilution from dividends that shareholders elect to receive in shares than cash. This is impractical because, under Dutch tax law, non-cash dividends can be issued only in class-A shares, while buybacks can be made only by purchasing class-B shares.

This Bloomberg piece has more details:
http://www.bloomberg.com/news/2014-05-02/shell-reviews-scrip-dividend-payments-after-record-share-spread.html

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

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