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

To: Steve Fancy who wrote (1368)	3/31/1998 12:41:00 PM
From: Mayer Tchelebon	Respond to of 22640

There is a precedent in Canada with Diamond Fields (DFR). In 1996 DFR was taken over by Inco, and each DFR share was exchanged for a package of 4 different securities (3 publicly trading and one not). The exchange date was, say, June 30. DFR had options and LEAPS. A few days before June 30 you were given two choices: (1) exercise before June 30 to receive DFR, which you would then exchange for the 4 securities; or (2) exercise after June 30 and receive only the 3 listed securities in the appropriate exchange ratios. (The unlisted security had negligable value and thus the loss to the option holder was not material). All option series outstanding as of June 30 were allowed to continue to expiry. You could still trade them, with the understanding that they were exercisable for the 3 securities. No new DFR series were created after June 30. This is my best recollection of this event. Anyone who remembers otherwise please correct me.