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Biotech / Medical : Oxford GlycoSciences Plc

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To: scaram(o)uche who wrote (289)	12/29/2002 7:13:25 PM
From: keokalani'nui	Read Replies (1) of 469

Without really, actually, truly knowing.... Whether the ADR trades or not in the US at all is subject to the arrangement between the bank and the company. A foreign company could stop the program I do believe. Probably under many common circumstances. If the program is stopped, then the question is what does the sponsoring bank do? I don't think it is holding the equivalent amount of ordinary shares to exchange into the ADRs in just such a case. Even if it did, I don't think those shares would be registered or even capable of being registered. So the ADRs would have to be liquidated in the open market underpinned by a right to redeem for cash from the sponsoring bank. If the sponsoring bank was properly hedging against this possibility it would be holding a derivative on the same amount of ordinary shares represented by the ADRs, I suppose. So, anyway, bottom line is that the holder would end up with a taxable event. That's all I was saying. I DO think the holder would get back the equivalent $$$, less all kinds of transaction costs and nuisance discounts. Since BNY sponsors so many ADRs, I just figure its subsidiary is the go-to liquidator, not that BNY is itself liquidating.

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