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

To: md1derful who wrote (8931)	10/9/1998 12:10:00 AM
From: Steve Fancy	Respond to of 22640

Doc, didn't hear about this yet. Sounds like it may be primarily designed to be the options vehicle. I wouldn't think it has anything to do with TBH and will not affect it. I've heard different lifespan speculation on TBH...from 6 months to a few years. Per the theory as I understand it, liquidity should slowly start to dry up as the companies become available, understood, and start establishing a track record. Thanks for the heads up...will look around for the info. sf

To: md1derful who wrote (8931)	10/9/1998 12:15:00 AM
From: Steve Fancy	Respond to of 22640

Well Doc, that's what I get for taking a few hours here and there...I come back uninformed. Promise I'll check the news first in the future. Here's the story... J.P. Morgan announces Telebras Basket ADRs BusinessWire, Thursday, October 08, 1998 at 17:36 NEW YORK--(BUSINESS WIRE)--Oct. 8, 1998-- Basket representing preferred shares of the twelve Telebras spin-off companies and of the Telebras residual company J.P. Morgan announced today its appointment as sponsored depositary bank for depositary receipts on Telecomunicacoes Brasileiras S.A. (Telebras) portfolio certificates (Recibo representativo de carteira de acoes oriundas da cisao de Telebras PN e Telebras PN residual - known locally as "RCTB 40"). The certificates are listed on the Bolsa de Valores de Sao Paulo (BOVESPA), and were created by the Companhia Brasileira de Liquidacao e Custodia (CBLC). The registration of the Telebras basket ADRs has been approved by the Securities and Exchange Commission (SEC) and the Commissao de Valores Mobiliarios (CVM), the Brazilian Securities Commission. An application has been made to list the ADRs on the New York Stock Exchange (NYSE) under the symbol RTB. Trading is anticipated to begin on Tuesday, October 13th or as soon as possible thereafter. The ADRs will represent the portfolio certificates which consist of the preferred shares of the twelve holding companies of Telebras, and the Telebras residual company until its dissolution. One ADR will equal 1,000 Telebras RCTB 40 portfolio certificates. Telebras has recently spun off into a total of twelve holding companies representing Brazilian long-distance, regional wireline and wireless entities. The Telebras residual company will disappear through corporate dissolution followed by liquidation. The preferred shares of the twelve holding companies were listed and started trading on the BOVESPA on September 21, 1998. Listing and trading of the twelve holding companies' ADRs on the NYSE are scheduled for October. Advantages to the investor Current Telebras ADR holders (NYSE:TBR), who plan to convert their Telebras equity interest into Telebras Basket ADRs - (NYSE:RTB), can realize benefits by converting prior to the NYSE listing of the twelve holding companies' ADRs. ADR holders would cancel their current Telebras ADRs (NYSE:TBR) against withdrawal of the shares of the underlying component companies and the Telebras residual company's. These shares can then be converted by BOVESPA -- free of charge -- into the local RCTB 40 portfolio certificates for subsequent issuance by J.P. Morgan of the Telebras Basket ADRs (NYSE:RTB). Such action will save investors the expense and inconvenience of canceling the twelve ADRs of the component companies after their listing on the NYSE and the ADR of the Telebras residual company in order to create the Telebras Basket ADR - (NYSE:RTB). "Morgan has created this ADR investment vehicle to offer investors not only a convenient and cost-effective way to maintain a single position in Telebras' post spin-off securities, but also offer the major advantage of liquidity backed by a local market instrument, and arbitrage opportunities between markets," said Rene Vanguestaine, managing director of J.P. Morgan's ADR business. "Moreover, this instrument will serve as an intermediate vehicle for investors who need additional time to evaluate the investment potential of the individual spun-off entities," added Vanguestaine. For more information on American Depositary Receipts (ADRs), visit, www.adr.com, J.P. Morgan's central source for timely worldwide ADR market intelligence and investor information. J.P. Morgan is the world's largest depositary bank based on total dollar trading volume and institutional investment. A global banking firm, J.P. Morgan serves clients through an integrated range of advisory, financing, trading, investment management and research capabilities. J.P. Morgan has been a pioneer and innovator in the ADR market since it created the first ADR in 1927. ADRs are securities used by non-U.S. companies to conveniently offer and trade their shares in U.S. equity markets. An ADS, or American depositary share, is a share evidenced by an American depositary receipt that represents a specified number of underlying shares held in custody in the issuer's home market. The terms ADR and ADS are often used interchangeably. Neither this announcement nor the information contained herein constitutes an offer or solicitation by J.P. Morgan for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful. Information herein is believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. CONTACT: Roy Marmelo, 212/648-7043 jpmorgan.com KEYWORD: NEW YORK INDUSTRY KEYWORD: BANKING Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Copyright 1998, Business Wire