Tomorrow both Washington H. Soul Pattinson (SOL) and Brickworks (BKW) will be reporting their annual results for the year ended 31 July 2011. Naturally as an investor in both of these entities (Brickworks is my second largest holding) I am looking forward to having a look at the accounts to see how things are progressing. What has got me a touch more excited is recent press speculation that the two companies may be looking to take some action with respect to the much maligned cross-shareholding structure that has been in place for many years.
I must admit I don't expect any revelations tomorrow but I would not be completely shocked if there was. Let us not forget that Rob Millner, chairman of both companies and to date a staunch defender of the diversification benefits offered by the cross-holdings, is also a shareholder like myself. I can think of $300 million reasons why it is also in the interests of the Millner family to see some sharp upward movements in the respective stock prices.
Here's hoping!
EDIT at 7am: I wouldn't mind seeing Soul Patt's lob a bid for the half of Brickworks that it doesn't own. Maybe a merger could be the way to go?
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