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Author: hermitinvestor Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 459  
Subject: $2 go POOF!?! Date: 9/19/2007 10:17 AM
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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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Author: yukor2 Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 432 of 459
Subject: Re: $2 go POOF!?! Date: 9/19/2007 11:12 AM
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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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Author: hedgehog444 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 433 of 459
Subject: Re: $2 go POOF!?! Date: 9/19/2007 11:34 AM
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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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Author: TMFWysocki Big gold star, 5000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 434 of 459
Subject: Re: $2 go POOF!?! Date: 9/19/2007 12:39 PM
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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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Author: hdcc1 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 435 of 459
Subject: Re: $2 go POOF!?! Date: 9/19/2007 4:01 PM
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Thanks.
But none of the ex-dates in the letter matches today's date.

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Author: TMFWysocki Big gold star, 5000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 436 of 459
Subject: Re: $2 go POOF!?! Date: 9/19/2007 5:59 PM
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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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Author: jkuhn Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 437 of 459
Subject: Re: $2 go POOF!?! Date: 9/20/2007 8:43 AM
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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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Author: tangofan Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 438 of 459
Subject: Re: $2 go POOF!?! Date: 9/22/2007 6:54 PM
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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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Author: jkuhn Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 439 of 459
Subject: Re: $2 go POOF!?! Date: 9/25/2007 8:32 AM
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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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