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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: Taikun who wrote (53663)9/25/2004 9:25:27 AM
From: Tommaso  Read Replies (1) of 74559
 
It won't "kill the market" because there is still the 49% that can be owned by nonresidents. It could cause the conversion into a different class of shares the holdings of nonresidents.

When this has been tried inother countries, the result has been that the shares available to nonresidents have traded at a premium to shares held by residents.

I own shares of Esprit and have had their 200-page explanation of the conversion to a trust on my desk for some weeks. They do not expect to have to force a sale of the class "A" shares, but reserve the right to do so: "the conversion of Class B Trust Units into Class A Trust Units are expected to provide enough control over the maintenance of the mutual fund trust status of the Trust so that redemption by the Trust of Class A Trust Units will be an
action of last resort"

However, the threat of a redemption at 95% of value would, I think, prevent much of a premium from developing.

It might be a good idea for anyone who is just thinking about buying Canroy shares and who is not a Canadian resident, to go ahead and do so before the window closes on some of these things.

In particular, the dual-listed shares might sell for a noticeably higher price on U. S. exchanges.
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