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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Smilodon who wrote (25699)3/31/1999 10:15:00 AM
From: jjs_ynot  Read Replies (1) of 122087
 
ZD --- Typically, the parent will trade at a discount to the arbitrage as you are probably aware.

Two reasons that I have heard stated:

1) tax consequences of selling the parent co. holdings

2) cost to retire debt associated with the spin-off company

BWDIK
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