Forum Archive Index - November 1999

[Sarah Corkill <Sarah.Corkill@directbroking.co.nz>]

The second instalment on TELCA is $4.70 due 01/09/2000.  This doesn't quite
add to the current TEL share price.  

A reason for this is the higher yield that an investor in TELCA receives
over and above that of the TEL yield.  Investors are willing to pay a
premium for receiving the full dividend + imputation credits for the better
yield and delay in final payment. 

The TELSA warrants have a 2:1 $4.50 on 30/03/2000.  This means that if you
are holding TELSA at their exercise date you have to pay $4.50 per warrant
to receive 1 TEL share.  For warrants these warrants to be worth buying you
have to believe the TEL share price is going to be at least $9.00 + whatever
you paid for your warrants on or before the exercise date.

Sarah Corkill
Direct Broking

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