For those tracking a good time to sell their BAM shares to purchase BN, the BAM/BN quote ratio has continued to climb since my initial post in this thread.

Subtracting the market cap of BN's 75% ownership of BAM from BN now gives:

$53B - 3 x 14.0B = $11.3B

This $11.3B for the assets has grown to a 68% discount to the $35.7 billion using IFRS values. If the quote ratio continues to rise, you might soon be able to own BAM though BN and have all the assets included in for free.

Price inefficiency can reach more dramatic proportions of course, but if the BN quote remains at this level or lower, expect an issuer bid by BN (offer to shareholders to sell stock to BN at a higher price). They would only do this if getting a serious bargain so the quote might need to fall a little further, yet any such issuer bid would almost certainly be higher than the present quote of $33.

- Manlobbi

Brookfield Corporation FAQ

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