E-L Financial Corp Ltd T.ELF

SIB - Deemed Dividend

[BB123456]

The other factor that will affect how many shares are taken up are the tax consequences.  The paid up value is only $36.45, so even if you buy the stock at $925 and get taken out at $975, you do not pay a capital gain on the $50, but instead the $938.55 counts as dividend income and you must pay tax on this, offset by a capital loss of $913.55.

So, really it only makes sense to play this as an arbitrage situation if you can do so in a registered account where dividends are tax free.

There may be other situatiuons where it makes sense, but look at your tax situation carefully.

[chuck84]

no question tendering in a non reg account is a bad idea regardless of your cost base or long term plans. in the highest tax bracket dividends are taxed about 10pts higher than cap gains at least here in bc. could also be i a situtation where u create cap losses that take years to offset depending on size wish to tender. flip side however and surprised we havent seen them yet is that many players

[chuck84]

to help anyone out there make their tender decisions or not... since the announcements and up to sep 18, the vwap and volumes as per bloomberg are as follows: ELF 35,387 shares at $925.32 EVT 29,638 at $130.64 UNC 136,655 at $102.27 worth noting that the tenders (at max price) are looking for 102k, 143k, 455k shares respectively. so total volume to date as percent of tender size is 35% for ELF