Telebras (TBH) & Brazil Message Board

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Strategies & Market Trends : Telebras (TBH) & Brazil

TBH 0.600

-6.2%

11:38 AM EST

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To: DMaA who wrote (375)	11/12/1997 12:37:00 AM
From: Steve Fancy	Read Replies (1) of 22640

Hi David, you raise some good questions. I don't know a lot about ADR's either except that my PaineWebber broker indicated they were traded just like stock. I guess I assumed from his statements that they are somehow guaranteed. I'm assuming that taxes are handled as if it were a US stock. I've only been trading this ADR a couple of months and have never been involved with them before. This is wildest stock I know at the moment. >>If and when they take TBR public, do they call back those shares in the bank valt and sell them leaving the ADR holder with.....what? Or do holders of the ADR get shares in the company 1 to 1? << It is my understanding that shares will be issued in all the new companies (13?) created. One of the anxiously details yet to be disclosed is how these shares will be distributed. Somewhere along the way I remember Brazil commenting that the little guys wouldn't get screwed in the deal. It seems to be a complex problem, but ADR holders are supposed to get stock I believe. I own the stock, but also trade options and as of yet have been caught off guard by anything specific to an ADR. The options are traded on American exchanges so I would expect no surprises other than volatility. Splitting the options as the company splits will be real interesting. May be some opportunity here, but as we get closer everybody will be looking for the details. sf

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