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  "documentTitle": "Elliott Management | Activist Presentation Deck | 39 slides",
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  "authorName": "Elliott Management",
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  "presentationDate": "2017-05-01 00:00:00",
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  "notes": "The slide uses a comparative bar chart to illustrate the opportunity cost of the current DSM structure.",
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      "kind": "chart",
      "text": "US$853 million of Franking Credits Could Have Funded a c.US$2 billion Buyback",
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      "text": "Franking Credit Utilized vs. Wasted - FY June 2016",
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      "text": "Management's current path - to destroy franking credits via usage of the Dividend Share Mechanism (DSM) just to ensure that Plc has sufficient funds to cover its own dividend - makes no economic sense",
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      "text": "Based on our analysis - by comparing the likely weighting of Australian shareholders pre and post-unification and with the DSM terminated - it is clear that, even in the case of dividends (and setting aside the vast improvement in franking credit release through buybacks), franking credits can be released at an enhanced rate and with equivalent efficiency as between Australian and non-Australian shareholders",
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      "text": "Management have misleadingly suggested that unification will somehow lead to a wastage of franking credits. In our view, this is wrong - and US$853 million in franking credits have already been destroyed. Instead, these could have been attached to a c.US$2 billion post-unification buyback that could deliver an increase in value of 15.9% for tendering shareholders",
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      "text": "BHP's management have been careful not to highlight that the existing DLC structure itself currently wastes a significant amount of valuable franking credits through the Dividend Share Mechanism, rather than putting those valuable tax credits into the hands of BHP's owners",
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      "text": "Source: Company filings. (1) Assumes tendering shareholders are Australian tax residents with average tax rate of 15% and cost base being average share price in the past twelve months. Includes the value of CGT benefits. (2) Assumes the number of Australian tax resident institutional shareholders increases to reflect unified BHP's increased index weighting. Assumes that credits are wasted on any shares not held by Australian tax resident shareholders",
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      "kind": "title",
      "text": "Instead, Current Management Prefer a Path of Wastage and Denial",
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