Sprott hostile bid for CEF
Sprott makes hostile $3.1 billion bid for Central Fund of Canada
From the Canadian Press
via Canadian Broadcasting Corp. News, Toronto
Wednesday, March 8, 2017
http://www.cbc.ca/news/canada/calgary/sprott-takeover-bid-central-fund-canada-1.4015314
Toronto-based Sprott Inc. said Wednesday it’s making an all-share hostile takeover bid worth $3.1 billion US for rival bullion holder Central Fund of Canada Ltd.
The money-management firm has filed an application with the Court of Queen’s Bench of Alberta seeking to allow shareholders of Calgary-based Central Fund to swap their shares for ones in a newly-formed trust that would be substantially similar to Sprott’s existing precious metal holding entities.
The company is going through the courts after its efforts to strike a friendly deal were rebuffed by the Spicer family that controls Central Fund, said Sprott spokesman Glen Williams.
“They weren’t interested in having those discussions,” Williams said.
Implications ????
For Americans, CEF was structured to afford holders certain tax advantages wrt the collectibles rate on bullion. Would this continue under Sprott?
Battle of the Titans…thanks for posting Pedro
Yes. Sprott funds are tax favorable if held for 1 year or more, like CEF. http://sprottphysicalbullion.com/why-sprott-physical-bullion-trusts/
It’s a great product. I personally think if you want told physical, this is the best way to do it.