Robert LauzonFording Canadian Coal Trust (Inc Trust)FDG.UN.TOHOLDDec 23, 2005
Most of his holdings is in his index linked funds and he has sold most of his positions of his active funds in the last two months. Thinks that coal prices have hit their peak. 2006 will be okay, from a distributions standpoint but 2007 and onwards looks a little more cloudy.
Being acquired by Teck Cominco (TCK.B-T). If you are holding this in a taxable account, there are some very negative consequences. In an RRSP or RIF you can avoid the tax consequences. He sold the majority of his holdings into the market prior to the transaction.
Being acquired by Teck Cominco (TCK.B-T). Arbitrage companies were forced to sell. There is a financing gap and Merrill Lynch (MER-N) is part of that, so the market is concerned. The deal could fall apart.
If held in an RRSP, you could continue holding. If it's in a taxable account, consider selling the units before the new deal gets done. Take it as a gain as opposed to the tax treatment that will supposedly come on the consummation of the deal. (Editor’s note. Check with your broker.)