[PEN-L:30023] RE: Re: sale and lease back of land and buildings

["Davies, Daniel" <daniel.davies@xxxxxxxxxxxx>]

>Now, the reason why I ask this question is that I started to
>think about an empirical study on the influence of lease for
>long-term debt swaps on stock returns and possibly more. Since it
>is a very fresh idea, just got triggered by Chris' question, I
>cannot get more specific than that at this point.

remember that whatever their effect on the reported balance sheet (I am
personally unconvinced that the finance lease loophole remains open rather
than having been closed in the 1980s, but am open to be convinced), the
primary purpose of a sale and leaseback transaction is to avoid or minimise
a tax liability.

dd


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