Michael Sprung
Fording Canadian Coal Trust (Inc Trust)
FDG.UN-T
SELL
Jun 15, 2007
Used to own it, sold it last year because the pricing of coal is very uncertain. Purchasers of coal are from Asia who are erratic in their purchases.
This is the type of coal used to make the pipes in the oil industry which is priced more erratically then the heating coal.
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.
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.