a) Nibru Ltd is currently undergoing an equal access share buy-back scheme. The market price of Nibru Ltd is currently $12.00 per share, while the share price has been appreciating steadily in the past two years by an average of 15 per cent per annum. The off-market buy-back price was announced at $11.20 per share, where the capital component of the offer is $5.20 per share and a fully-franked dividend is $6.00 per share. Corporate tax rate is 30 percent. A hedge fund, Babylon City LLC, has become a shareholder in Nibru Ltd by acquiring a 4.5 percent ownership in Nibru Ltd over the past year. Babylon City LLC has also rejected participating in this buy-back scheme at the current share price. Babylon City LLC however made a counter offer to Nibru Ltd last Monday to tender all its shareholdings in Nibru Ltd at the price of $12.10 per share. Babylon City LLC has then been accused of 'green mail by Nibru Ltd management. Discuss the following: i. Outline possible reasons why Nibru Ltd management accused Babylon City LLC of 'green mail. ii. Advise a domestic retail shareholder (who has a marginal tax rate of 32.5 percent) and a superannuation fund (15 percent tax rate) whether either of them should participate in Nibru Ltd's equal access share buy-back. Assume that shares in Nibru Ltd were bought by the retail investor and the superannuation fund more than three years ago at a price of $5.20 per share. a) Nibru Ltd is currently undergoing an equal access share buy-back scheme. The market price of Nibru Ltd is currently $12.00 per share, while the share price has been appreciating steadily in the past two years by an average of 15 per cent per annum. The off-market buy-back price was announced at $11.20 per share, where the capital component of the offer is $5.20 per share and a fully-franked dividend is $6.00 per share. Corporate tax rate is 30 percent. A hedge fund, Babylon City LLC, has become a shareholder in Nibru Ltd by acquiring a 4.5 percent ownership in Nibru Ltd over the past year. Babylon City LLC has also rejected participating in this buy-back scheme at the current share price. Babylon City LLC however made a counter offer to Nibru Ltd last Monday to tender all its shareholdings in Nibru Ltd at the price of $12.10 per share. Babylon City LLC has then been accused of 'green mail by Nibru Ltd management. Discuss the following: i. Outline possible reasons why Nibru Ltd management accused Babylon City LLC of 'green mail. ii. Advise a domestic retail shareholder (who has a marginal tax rate of 32.5 percent) and a superannuation fund (15 percent tax rate) whether either of them should participate in Nibru Ltd's equal access share buy-back. Assume that shares in Nibru Ltd were bought by the retail investor and the superannuation fund more than three years ago at a price of $5.20 per share