J.P. Morgan Launches Telebras Common Shares Basket ADR.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 27, 2000 J.P. Morgan announced today that it has launched a sponsored American depositary receipt sponsored American Depositary Receipt An American Depositary Receipt in which the company whose shares are held in custody has direct involvement in issuance of the ADRs. (ADR ADR - Astra Digital Radio ) program for Telecomunicacoes Brasileiras S.A. (Telebras) common share portfolio certificates on the over-the-counter (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ) market trading under the symbol TBASY. The ADRs represent a basket of the common shares of the twelve holding companies of Telebras. One ADR equals 1,000 Telebras portfolio certificates. The underlying portfolio certificates, which carry voting rights, are listed on both the Bolsa de Valores de Sao Paulo Bolsa de Valores de Sao Paulo (BOVESPA) The largest stock exchange in Brazil. (ticker: RCTB RCTB Reasonable Cause To Believe RCTB Reserve Components Troop Basis RCTB Rural Communities Technology Board 31) and the Bolsa de Valores do Rio de Janeiro Rio de Janeiro, city, Brazil Rio de Janeiro (rē`ō də zhänā`rō, Port. rē`  thĭ zhənĕē`r (ticker: TELE31). The TELE31 and RCTB31 are fully fungible A description applied to items of which each unit is identical to every other unit, such as in the case of grain, oil, or flour.Fungible goods are those that can readily be estimated and replaced according to weight, measure, and amount. in Brazil. The Camara de Liquidacao e Custodia (CLC), the Rio Stock Exchange's clearing arm known for its expertise in custody matters, is the issuer of the ADRs. &uot;Morgan created this ADR basket to provide investors a convenient way to hold and trade positions in the common shares of the Telebras spin-offs. The security provides U.S. dollar-denominated trading and clearance, the liquidity of a local market instrument, and arbitrage opportunities among the various Telebras securities,&uot; said Eduard H. van Raay, vice president for product development in J.P. Morgan's ADR group. In view of Telefonica S.A.'s tender offer for two of the Telebras spin-offs - Telesp and Tele Sudeste Celular it is anticipated that TELE 31/RCTB31 holders will be given the opportunity to participate in the tender by exchanging their shares for Telefonica shares and a new basket, to be comprised of the remaining ten Telebras spin-off companies. In 1998, Telebras spun off twelve holding companies representing Brazilian long-distance, regional wireline and wireless entities. The common shares were listed and started trading in September 1998. The world's largest ADR depositary and a global financial services firm, J.P. Morgan serves clients through an integrated range of advisory, financing, trading, investment management, and research capabilities. Visit www.adr.com, J.P. Morgan's central resource for timely worldwide market intelligence and investor information. For further information on Morgan, visit www.jpmorgan.com. An ADS, or American depositary share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. , is a U.S. dollar-denominated form of equity ownership in a non-U.S. company. It represents a specified number of foreign shares on deposit at a custodian bank in the issuer's home country and carries the corporate and economic rights of the underlying foreign shares. An ADR, or American depositary receipt American Depositary Receipt (ADR) Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. , is a certificate evidencing ownership of a certain number of ADSs. The term ADR is sometimes used to refer to ADS. Neither this announcement nor the information contained herein constitutes an offer or solicitation by J.P. Morgan for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful. An offering is made by means of a prospectus only. Information herein is believed to be reliable, but J.P. Morgan does not warrant its completeness or accuracy. J.P. Morgan is the marketing name for J.P. Morgan &Co. Incorporated and its subsidiaries worldwide, including Morgan Guaranty Trust Company of New York. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion