Forum Archive Index - November 1999

["Rini H" <the4rs@ihug.co.nz>]

Dear Sarah,
Thank you for clarifying the TELCA.

Now, I am not fully with you regarding the TELSA warrants.
Suppose I bought TELSA today at 13cents and keep it until the exercise date
30/3/2000.

And if, if, if, the share price scenario on 30/3/2000 for TEL is:
1) less than $9.00, my TELSA warrant of 13 cents is expired worthless.
Right, Sarah?
2) at least $9.13 ......... Then I have to pay $4.50 only (plus 13 cents
that I've paid today) to enjoy a full price TEL share that is worth $9.13.

Where is the catch? Who will pay for the difference of $9.13 minus $4.50 =
$4.63?????
Looking forward to your reply, Sarah.
Thanks,
Rini

-----Original Message-----
From: Sarah Corkill <Sarah.Corkill@directbroking.co.nz>
To: 'sharechat@sharechat.co.nz' <sharechat@sharechat.co.nz>
Date: Thursday, 25 November 1999 08:15
Subject: RE: [sharechat] TELECOM Instalment Receipts AND WARRANTS


>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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