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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (1054)	2/17/1998 8:00:00 PM
From: Glenn D. Rudolph	Respond to of 22640

ADR REPORT - Telebras up in active trade Reuters Story - February 17, 1998 19:35 %AUT %DE %BUS %US %ELC %SE %BNK %LATAM %BR %TEL %ADRS/ TBR TEL.SA %DPR %STX %HOT %MRG %LDC %EMRG %ADR/ UBB.SA UBB LMEb.ST ERICY NOKSa.HE NOKa DAIG.F DAI VOLVY VOLVb.ST V%REUTER P%RTR NEW YORK, Feb 17 (Reuters) - Brazilian telephone holding company Telebras SA rose Tuesday to stand out among American Depositary Receipts (ADRs) and foreign shares. Traders said there was little news moving ADRs, but the market was underpinned by steadier Asia exchanges overnight. Telebras was up 1-3/4 to 122 and was among the most-active shares on the New York Stock Exchange. Telebras, a bellwether among Latin American shares, faces options expiration Wednesday. Traders said Telebras and other Brazilian shares had been boosted recently by investors shifting funds out of Mexico into other Latin American markets. Among other Brazilian ADRs, Unibanco was up 15/16 to 34-15/16. Swedish telecom equipment company Telefon AB L.M. Ericsson rose 1-4/16 to 43-7/16. Finnish telecom equipment company Nokia Group was up 4-1/8 to 95-1/8, continuing to climb from strong earnings last week. German auto maker Daimler-Benz was up 2-5/16 to 74-3/16. Swedish auto maker Volvo was up 1-7/8 to 28-3/4 ahead of the release of its 1997 results. ADRs allow U.S. trade of foreign shares. ((-- Wall Street desk, (212) 859-1879))

To: Steve Fancy who wrote (1054)	2/17/1998 10:04:00 PM
From: jeremy smith	Read Replies (4) \| Respond to of 22640

Hi Steve. Sorry for the silence...took an extended w/end to enjoy with my family. OK. re. treatment of ADRs. I very much doubt that the Brazzos will reveal the exact workings of this in the next couple of weeks, as I think I read in one of the articles posted here. I'd love to believe that they already have the solution, but I doubt they do! Also, the suggestion in one of these articles that one ADR will simply represent a basket of 12 different shares is equally unlikely. We have looked in to this ourselves, and the legal opinion appears to be that this would just not fly with either the NYSE or the SEC. We will need to have separate independent securities. This of course raises the issue of whether all the spin-offs will meet the minimum listing criteria. Again, I doubt it - at least in so far as the NYSE is concerned. In short, we'll just have to wait and see what Salomons recommend in exchange for their 0.07% advisory fee!. I'm not concerned though.YET!!!! Clients are worried, but they have no alternative right now. They will stay with TBR UNTIL THE ALTERNATIVE PRESENTS ITSELF.AND IT WILL. When that day comes, investors will sell out their current holdings, and reposition themselves back in to the "choicest" operators -which almost certainly WILL be available in ADR form. We're just gonna have to wait, I'm afraid. Jeremy