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

To: pat mudge who wrote (666)	1/30/1999 5:07:00 PM
From: Chris Stovin	Respond to of 815

Chris - After reading the various articles, I'm wondering if the only way to hold JDSUniphase in a Canadian retirement account is to hold JDS Fitel before the merger closes. After that time won't all shares be the merged JDS Uniphase and therefore not Canadian-based? I'm only brainstorming here, thinking maybe there's good reason to see lots of buyers of JDSFitel between now and June. Pat Pat, I don't think it's a problem holding it in a CDN RRSP before or after the closing date. As long as you keep it in the form of the exchangeable shares. The exchangeable shares are tied to a Canadian subsidiary company which then enables it to trade on the TSE. More importantly, it (probably) will be construed as an investment into a CDN corporation. I think that's how they are getting around it. Here's an excerpt from one of the articles previously posted on SI... Excerpt from one of the articles; Under the terms of the merger, JDS Fitel shareholders living in Canada will receive .50855 shares in the newly formed JDS Uniphase Corp., or in its Canadian subsidiary, JDS Uniphase Canada. If this scenario is accurate then the question I now have is... will the liquidity of the CDN shares be affected as shares are exchanged for the US equivalent shares trading on the Nasdaq. I am sure it will mean that the share price of the CDN shares will be pegged against the US shares and NOT vice versa. The one thing you can say about mergers is that it gets the grey matter working overtime. And I thought understanding options was complicated! Geez! Cheers! Chris

To: pat mudge who wrote (666)	1/30/1999 6:43:00 PM
From: Sultan	Read Replies (1) \| Respond to of 815

.....Slightly off topic.... Not correct Pat if you look at previous mergers of this nature. More recent one where I have shares, a company called Promis systems was bought out by PRI Automation. It closed on Jan 26. Some time next week, my Promis shares will be converted to PRIA exchangable shares based on some ratio, and will trade freely on TSE. There is no tax implication to me until I sell and if some one were to buy the exchangable shares on TSE, they can hold it under RRSP without the share counting towards 20% foreign content limit. In affect exchangable share will trade in sinc with PRIA give or take about 4-5% premium based on how badly some one wants to buy them under RRSP. There is another company, used to be canadian, merged with an american and moved the HO to Georgia and is now considered american for RRSP purpose. The company, IVI Checkmate trades on nasdaq under CMIV and on TSE they actually have two classes of shares trading. IVI which is exchangable to IVC when ever the share holders want to and IVC which is considered directly equivalent to CMIV (in other words count as foreign holding). If you look at the price of IVI and IVC you will see a real divergence. IVC trades almost same as CMIV but convert for C$, but IVI which is identical to IVC but because is exchangable share to IVC and is not considered foreign holding yet trades at significant premium to IVC. So you could actually see once the merger goes through, JDS on TSE trading at slight premium to JDS uniphase on nasdaq.