How's this for 'tax leakage' by any other name?"...more than $3 billion in 'tax leakage' from this takeover of Fording Coal income trust. That’s even more than the $800 million a year from the LBO of BCE.
Another LBO Of A Canadian Income Trust Due To Harper's Income Trust Tax:
Fording Canadian Coal Trust To Be Bought By Teck Cominco
THE CANADIAN PRESS
July 29, 2008 (EDIT)VANCOUVER
-Teck Cominco Ltd. pulled the trigger on a deal to buy the assets of Fording Canadian Coal Trust for about US$14 billion. Tuesday's bid is for US$12.4 billion in cash and shares worth about C$1.5 billion. Don Lindsay, president and CEO of Teck Cominco said the structure of the deal is key because of the tax advantages, and the fact the company already owns 20 per cent of Fording. Teck expects to reap more than US$3 billion in tax benefits from the transaction based on established rules covering the acquisition of Canadian resource properties. It will fund the cash portion largely from a US$9.8-billion loan facility it has arranged with a syndicate of banks. The deal follows what Fording described as an extensive review of strategic alternatives, particularly in light of the need to address our income trust structure before 2011.
Friday, August 1, 2008
Posted by Fillibluster at 3:19 PM