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Gold/Mining/Energy : JDS Fitel -- Ignore unavailable to you. Want to Upgrade?

To: Chris Stovin who wrote (634)	1/28/1999 10:30:00 PM
From: mariner	Respond to of 815

Chris The first part of your question is easy. JDS will trade as usual on the TSE tomorrow and for the short-term future, until the deal is voted on and closed. This is where it gets murky and we will need clarification. The press release doesn't say anything about trading on the TSE once the deal is consummated. It says the combined company will trade on the NAZ. That's fine, so long as you correctly point out, JDS Uniphase Canada (the wholly owned subsidiary) is considered Cdn content for our RSPs. If not, this is a real problem for people like you and me. Punished again because of stupid tax laws which inhibit our ability to plan for a self-reliant future(end of rant). As far as the price goes for short term, I've had a change of thought here. Given that this is a merger, seems to me the market should value the deal at the sum of the 2 and divide that number by 2. This should put us somewhere around $90 Cdn, assuming todays closing prices, using rounded off numbers and a 50% premium on the US $ shares of Uniphase. Hope that helps. I'd still love to hear from someone who can speak with authority on the RSP issue. By the way, longterm I think this will be a killer company. Uniphase seems to be getting its act together based on quarterly report earlier this week. JDS is stellar in its own right. Lots of potential here IMHO.

To: Chris Stovin who wrote (634)	1/29/1999 12:55:00 AM
From: Sultan	Respond to of 815

Under the terms of the agreement, JDS FITEL shareholders resident in Canada will, pursuant to a plan of arrangement, be entitled to receive 0.50855 shares of exchangeable stock of JDS Uniphase Canada, a wholly owned subsidiary of JDS Uniphase, or, at their option, 0.50855 shares of JDS Uniphase, for each JDS FITEL share they hold. The exchangeable shares are the economic and voting equivalent of shares of common stock of JDS Uniphase and will be exchangeable for such shares on a one-for-one basis at any time. The current shareholders of JDS FITEL and Uniphase will each own approximately 50 percent of the combined company following the merger. The structure of the transaction is expected to provide the opportunity for a tax-free exchange for Canadian holders of JDS FITEL stock. I am not sure why I am posting here since I don't own the stock but you can count on the following 1) There is no premium as such, it is a merger of equal so forget about C$90 or other numbers 2) It is a tax free situation for canadians 3) There will be two classes of shares. For your purpose, you will be able to opt for shares that you can hold in your RRSP without triggering the 20% limit 4) The exchangable share that you will get will trade on TSE and in C$ and people who opt to get the JDS Uniphase will trade in US Dollar on nasdaq. There are many precedence of the above arrangements with companies that have been taken over. More recent example would be IVI and PSW, with similar arrangements. So don't worry, be happy that you have the stock and the option....