CVR - Pie in the sky

[Optionray]

Wouldn't you think there would have to be some hint to an elevated number to get more of us on board for the approval.  Yet, after listening to the OSH conference, my interpretation of expected tcf is around 7. That projected cvr doesn't get me too excited

Next, although Pavel addressed the question to some degree, anyone familar with:

1)  How IOC stock will be rolled over into OSH stock and how the IRS reporting will be different owning an austrialian stock.

2) Options expiring in Jan 17 - anyone know if they get converted into some other option, or if they automaically get converted to IOC or OSH stock, when/if the merger is approved by both shareholders and regulators in the 3rd qtr of 2016?

3) Anyone have any experience with the debt instrument (CVR) and what to expect.  As an example, if I convert my calls to shares, and if the merger is approved, do I automatically get some kind of debt instrument in my trading account that can also be traded (fluctuates in value like a stock or option)?

4) Dividends from OSH stock after the merger -  Maybe a plus, curious what the dividend/yield is if anyone knows and if anyone feels like that softens things a bit?

Thanks in advance.

[Stavros]

It is incumbent upon IOC to explain ALL the nuts and bolts regarding taxes, Options, CVRs etc and etc in order for IOC shareholders to vote YES or NO to the deal.

In principle, absent that information, I vote NO ... even if the deal is sweetened.

OSH pays a dividend of something like 1.5%

[davidhmtk]

It is incumbent upon IOC to explain ALL the nuts and bolts regarding taxes, Options, CVRs etc and etc in order for IOC shareholders to vote YES or NO to the deal. In principle, absent that information, I vote NO ... even if the deal is sweetened. OSH pays a dividend of something like 1.5%

Unexpired options in a  clean stock swap takeover would be switched to be priced in the acquirers stock (eg in a 8:1 swap Jan 80's would become Jan 10's). Add in the CVR and it gets trickier, see http://www.optionseducation.org/tools/fa...tcies.html

[Stavros]

BUT OSH is not a listed stock and as such has no options

[katytrader]

BUT OSH is not a listed stock and as such has no options

OSH and its options trade on the ASX.

[Palm]

And OSH has stated they are looking at a possible NYSE listing.

[Skipper1]

And OSH has stated they are looking at a possible NYSE listing.

T

The company may only qualify as a "Pink Sheet Stock"

[Skipper1]

The company may only Qualify for a " Pink Sheet " listing!!

[Skipper1]

And OSH has stated they are looking at a possible NYSE listing.

T

[katytrader]

And OSH has stated they are looking at a possible NYSE listing.

I thought it to be a throw-away comment.  What would they gain aside from more regulatory headache?   They are covered by a dozen analysts now and with XOM and TOT as partners should be able to raise funds as needed without a US listing.   I think Pavel's question had a Canadian listing included......sure we'll look into it.  By the time they finish looking the CVRs will have expired anyway.

General question: have any US brokerages shown competence in handling foreign-currency denominated shares traded outside of US?   Twenty years ago as a UK resident I traded online with Fidelity in the UK, but they so badly screwed up their existence there that they sold the business to Schwab.  Merrill Lynch in London refused to sell me a simple forex contract as a hedge on the funds to be received when house sale was completed.....seems like I was a US customer on their books and had to go through my US broker to get a simple sterling-dollar forward contract.   Maybe things have improved over two decades, but I expect that the transaction costs both monetary and emotional will be high when one who is only in US institutions tries to unwind the Oz instruments.