{"id":235,"date":"2006-10-31T19:51:40","date_gmt":"2006-10-31T23:51:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=235"},"modified":"2006-10-31T19:51:40","modified_gmt":"2006-10-31T23:51:40","slug":"bce-trust-conversion-and-preferred-offer-now-dubious","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=235","title":{"rendered":"BCE Trust Conversion and Preferred Offer Now Dubious?"},"content":{"rendered":"<p>It has just been <a href=\"http:\/\/www.cbc.ca\/money\/story\/2006\/10\/31\/flaherty.html\">announced<\/a> that there will be a tax on trusts. Any trusts created after today will be subject to the tax in 2007; existing trusts will be taxed in 2011.<\/p>\n<p>\u00a0This makes execution of the <a href=\"http:\/\/www.prefblog.com\/?p=153\">BCE offer to buy their preferreds<\/a> rather dubious, since it was conditional on their conversion taking place.<\/p>\n<p>Of course, the pref market never fully believed the conversion would take place anyway: see the <a href=\"http:\/\/www.prefblog.com\/wp-content\/uploads\/2006\/10\/BCPRC_FBPrice.pdf\">attached graph<\/a> of the <a href=\"http:\/\/www.prefshares.com\/glossary.html#flatBidPrice\">flatBidPrice<\/a> of the most active affected issue, BC.PR.C, for this issue&#8217;s reaction to the offer. The putative offer price was $26.25, announced October 11.<\/p>\n<p>The market could be very active tomorrow, and not just in the issues affected by the offer! There may well be a stampede of income investors into prefs out of trusts &#8211; well overdue, since they should never have been in those things in the first place.<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It has just been announced that there will be a tax on trusts. Any trusts created after today will be subject to the tax in 2007; existing trusts will be taxed in 2011. \u00a0This makes &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,16],"tags":[],"class_list":["post-235","post","type-post","status-publish","format-standard","hentry","category-issue-comments","category-miscellaneous-news"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=235"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/235\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}