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I noticed today that my broker had added some cash to two accounts where I have my TTM holdings. I called to find out what this meant. The cash was in lieu of partial shares in my accounts due to this action (TD Ameritrade does not maintain partial shares in their accounts). What follows is a paraphrase of their further explanation...

Tata Motors [TTM] is offering rights/warrants [Symbol: TTM.RT] to those who own TTM ADRs, This means we have a limited-time opportunity to purchase more ADR shares at a given price. This offer expires quickly, on 27 April 2015. We can purchase a specific number of shares for $39.42 (Canadian!). You may want of check the exchange rate to see if you feel it's a bargain.

Companies do this for two reasons: 1) to obtain income, and 2) to make use of some corporate financial availabilities (bookkeeping). Also, they are likely thinking that the price/share will be going up soon.

All my best,

TTM Position: Long & Holding
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