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Yesterday, my NZT closes at $24.97.

This morning, she opens at $22.39.

Wha' happened?

Mike
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I assume it has something to do with the weird stock split acrobatics that they are doing for the ADR shares as part of cancellation of every ninth regular share in a bid to Return Capital to the shareholders as a result of the sale of their Yellow Pages.

This letter describes the scheme:
http://www.telecom.co.nz/binarys/adr_covering_letter.pdf

I am confused reading it and I can't find anything clearer. I assume that there should be some kind of cash transfer as well to compensate for the canceled shares, but I can't find anything about the date that payout will take place or the price they will pay for the canceled shares.

I hope someone more knowledgeable about this can explain it better.

Cheers!
Kevin
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I'm guessing that yesterday was the ex-date for this capital restructuring. So you will, some time real soon, get 42% more shares in your account, but right now you are looking like you just lost $2.

Rgds,

HH/Sean
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The information at this link may help:

http://www.telecom.co.nz/content/0,8748,205710-200141,00.html?nv=sd

David
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Thanks.
But none of the ex-dates in the letter matches today's date.
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But none of the ex-dates in the letter matches today's date.

That's true, and I can find no explanation for that apparent discrepancy.

David
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US Record Date: Sep 21, 2007
US Payable Date: Sep 24, 2007
Stock Distribution Rate: 0.4222

http://www.adrbny.com/dr_dividends.jsp?cusip=879278208

Still not sure why the price movement happened Sep 19.
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US Record Date: Sep 21, 2007
[...]
Still not sure why the price movement happened Sep 19.


Because the ex. dividend date is two days before the record date. See http://www.investopedia.com/articles/02/110802.asp

Bernhard
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This was just posted to the BNY site late yesterday and explains Wednesday's price move.

US Record Date: Sep 21, 2007 (Ex-Dividend Date Sep 19, thanks Bernhard)
US Payable Date: Oct 12, 2007
Cash Distribution: $3.00 (approx)

The exact value of the distribution may change due to exchange rates.

The 0.4222 share stock distribution should now show in your account and will affect the trading price today (Sep 25).

http://www.adrbny.com/dr_dividends.jsp?cusip=879278208

John
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