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I'm sorry for not responding sooner. I was trying to find the SEC filings you talked about, however, I was unable to access this information because of technical difficulties at their end. I will try to give you my theory of why CIBC's share are not responding to the increases in the value of Global Corssing's shares.

According to CIBC's 1998 annual report they have been providing advice and capital to Global Crossing Limited since 1996. This included a co-lead on an US$800 million senior note issue, a lead on an US$800 million project financial bank facility, participation in an US$300 million initial public offering underwriting and an ownership position in the Company.

Therefore some of the shares you speak about do belong to CIBC, however I suspect that most of the shares are actually attached to Street Certificates. Street Certificates which are stock certificates made out in the name of an investment deale (in this case CIBC where they participated in the initial public offering) and indorsed so they can be freely negotiated and accepted for delivery between investment dealers. These Street Certificates may change hands many times with no change in registration being made.

Also, CIBC manages $121 billion in assets for other people and some of these shares may be included in these funds.

Finally CIBC have a disastrous forth Quarter in 1998 which (thankfully) ended 31 October 1998. Earnings per share for this quarter fell to a penny (a penny with a maple leaf on it). Most of the problem occurred with the CIBC World Markets division and would have masked any benefits of holding Global Crossing. The operations of CIBC World Markets has since turned a round and CIBC reported earnings per share for the first quarter of 1999 of 72 cents only 4 cents lower than last year.

In summary, I think that it was the combination of the above that is has caused the increase in the value of Global Crossing to be not reflected in the price of CIBC's shares.

Thanks for bring Global Crossing to our attention. It is nice to know that the CIBC is picking winners even during bad times.

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