RE:RE:Here is the way I read this deal.Hey W$ - So, they are offering to buy back 3,375.000 shares at $12C-
What if by 10/17, double that amount or 6,750,000 shares have been submitted for tender? Wouldn't that mean the company will only by back
2% on a prorata basis.
Thus if someone owned 10,000 shares and submitted them all to the company for the buyback. Since it is pro-rata.
Wouldn't FEC only buy back 200 (2%)of their shares at $12? And if their cost basis was $8, they made $4 a share or a whooping $800 profit? Plus it is taxable income and in the 52 page circular, there are several confusing pages on how the money might be taxed plus withholding taxes may be taken out.
Here is the 52 word salad explaination document, it may not open without a stockwatch subscription, since I instantly pulled it from their site. Anyone buying Canadian stocks should at least own the basic membership to Stockwatch. It gives you so much info so fast and many other advantages.
5735800.pdf (stockwatch.com)