Robert LauzonFording Canadian Coal Trust (Inc Trust)FDG.UN.TODON'T BUYMar 24, 2006
All of his active funds have sold this trust although some of the index funds still have some. There are some increasing costs as well as a concern on the pricing of their coal sales. The best is probably behind it. If you own, wait for the distribution on March 29.
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.)