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

To: steve kammerer who wrote (9748)	11/17/1998 3:01:00 PM
From: Steve Fancy	Read Replies (4) \| Respond to of 22640

Sorry guys, been kinda hectic here. TBR looking good. Steve, what do you consider and odd lot. In my mind, a holder of 100 TBR ADR's receives the share allocation I posted a few days back. I believe there were two companies you'd receive 2 shares in, a couple at 5, on up to 3 @ 100. sf

To: steve kammerer who wrote (9748)	11/17/1998 5:44:00 PM
From: jayray	Respond to of 22640

The conversion of TBR into the “New 12” doesn't add up. Instead of 12 new ADRs per 1 TBR ADR we got 4.373 per TBR ADR. The Bovespa closing prices 11/12/98 for all 12 new ADRs was $R 94.04, but the closing price for our adjusted new ADRs was only $R 70.63, a 24.9% drop. Is the stub TBR really worth the “missing” $R 23.41? Any number less than 300 TBR ADRs, or any number of TBR ADRs not divisable by 300, generates a fractional new ADR, usually with TRO, Tele Centro Oeste Celular Participacoes S.A., which will be sold off by the Bank of New York. This, of course will probably depress the prices of the new ADRs sold off while adding to the bottom line of BK. The inclusion of TRO, Tele Centro Oeste Celular Participacoes S.A, at a conversion ratio of 0.333 seems almost designed to cause difficulty for the smaller retail investor. It also seems odd that the 1 for 1 conversion rate which was touted world wide wound up being substantially less. Anyone have answers, corrections or opinions regarding the above? The conversion of TBR into the new ADRs is shown below. Service type/Company Ticker/Name/ # New ADRs per 1 TBR/ # New ADRs per 100 TBR/ # New ADRs per 300 TBR Long distance EMT Embratel Participacoes S.A. 1.000 100 300 Wirelines TSP Telesp Participacoes S.A. 1.000 100 300 TNE Tele Norte Leste Participacoes S.A 1.000 100 300 TCS Tele Centro Sul Participacoes S.A. 0.200 20 60 Cellular service TCP Telesp Celular Participacoes S.A 0.400 40 120 TSD Tele Sudeste Celular Participacoes S.A 0.200 20 60 TMB Telemig Celular Participacoes S.A. 0.050 5 15 TSU Tele Celular Sul Participacoes S.A. 0.100 10 30 TRO Tele Centro Oeste Celular Participacoes S.A. 0.33 33.33 100 TND Tele Nordeste Celular Participacoes S.A. 0.050 5 15 TBE Tele Leste Celular Participacoes S.A. 0.020 2 6 TCN Tele Norte Celular Participacoes S.A. 0.020 2 6