We've had a few queries regarding the Mayne buyback (MAY-$3.46). Like similar buybacks at Telstra and Foster's recently, we think shareholders should be cautious - because there's a reasonable chance you'll end up selling your shares at a below market price. And with this buyback, there's no fully-franked dividend component to console you. Shareholders can offer to tender their shares at any price between $2.80 and $4 or accept whatever the final buyback price is. If that price comes in close to $2.80, shareholders will be left wishing they sold on market, given the share price is currently trading at $3.46. If you wish to participate, we recommend only doing so by tendering a price higher than the current market price. There's a fair chance you'll end up keeping your shares but what's the point of selling below today's price? Although those with very small holdings may still wish to consider the offer as a way of avoiding brokerage.

In other news, we find Ross Buckland's decision to step down from the board very interesting. He 'strongly believes' that Mayne's acquisition of aaiPharma is not 'in shareholders' interests'. We applaud Buckland for taking a stance against what he obviously sees as institutional irrationality. But, with the stock down 5% since issue 140/Nov 03 (Hold while Unstable-$3.63), we're maintaining our HOLD WHILE UNSTABLE recommendation.