# What are people opting for in BCE/BA?



## gardner (Feb 13, 2014)

I couldn't see an existing thread on this. Sorry if it's a dup.

There appear to be several options for BA holders.
(a) $31.00 in cash, subject to pro-ration;
(b) 0.6371 of a BCE common share, subject to pro-ration; or
(c) $7.75 in cash and 0.4778 of a BCE common share.
(d) flog it for market price of ~30.90

I assume the "subject to pro-ration" is for converting partial shares. Is that right?

I'm inclined to hang on to mine and take the stock deal. In fact the stock deal looks pretty good to me. I could buy BA at 30.90 and converted to BCE that's $48.50 a share when BCE is trading at 49.20 or so.

Does the stock-for-stock deal trigger capital gains?


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## My Own Advisor (Sep 24, 2012)

I was curious to understand what others are doing as well.

My understanding is the "share swap" will not trigger capital gains, but I don't know this for sure. 

I think taking BCE stock (b) is a good long-term move. 5% yield and capital gains to come.


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## thompsg4416 (Aug 18, 2010)

I'm taking the shares of BCE as well. 

Quick question.. I noticed BA is trading at 30.81 today. BCE will purchase all shares at 31.00 that's a .19 cent difference. 

What would happen if I were to purcahse more shares of BA today? would I get bought out on x date for 31?? basically pocketing a guaranteed profit? It's not big but over the short term its not bad...


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## humble_pie (Jun 7, 2009)

thompsg4416 said:


> What would happen if I were to purcahse more shares of BA today? would I get bought out on x date for 31?? basically pocketing a guaranteed profit? It's not big but over the short term its not bad...



price discrepancies of this nature nearly always appear in buyouts. Gurus say they represent the risk which the market assigns to the possibility of the deal falling through. In other words your profit is not "guaranteed," it's just thought to be (in this case) pretty good.

keep in mind that following a failed buyout, price of the target stock would likely take a big hit.

i don't know the terms of this deal (not involved) but one would also keep in mind the settlement date. That's when a new buyer will actually get paid. In this hypothetical example, he'll receive $.19 less commish, after paying $30.81 plus commish. 

let's say he might receive 16 pennies net per share. If the delay is long, as in several weeks or months, those few pennies will have to be amortized over all those weeks or months, which makes the manoeuvre even less appealing.


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## yyz (Aug 11, 2013)

Don't overlook the fact that BCE goes ex dividend I believe Sept.11. Expect the share price to drop at this time and affect the "conversion" price to BCE shares.
It will also quite possibly affect the price of BA as well. Also remember that the only "guarantee" you have is the $7.75 + 0.4778 BCE share. The other offers are subject to pro ration so you can't be sure you'll get the $31 cash. Like you also mentioned you can sell it in the market for guaranteed cash but also pay a commission.I'm thinking of selling mine in the market and buying BCE shares on the ex div price drop.


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## Islenska (May 4, 2011)

Have 2000 shares of BA and will just leave for the dust to settle
Long time for this stock to show some green!


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## nortel'd (Mar 20, 2012)

humble_pie said:


> i don't know the terms of this deal (not involved) but one would also keep in mind the settlement date. That's when a new buyer will actually get paid. In this hypothetical example, he'll receive $.19 less commish, after paying $30.81 plus commish.
> let's say he might receive 16 pennies net per share. If the delay is long, as in several weeks or months, those few pennies will have to be amortized over all those weeks or months, which makes the manoeuvre even less appealing.


+1

On July 23, 2014 I held the stock BA, the preferred shares BAF.PR.A, and the Bell Aliant Callable 6.17% 26FB37 bond in a non-registered margin account. 

I already hold enough BCE and for every $31 owing in my margin account I would be charged $0.48 in interest to wait for the November 30 settlement date. I sold my 500 Bell Aliant common shares shortly after BCE offered to privatize Bell Aliant and used the proceeds to pay off what I owed on my margin account.

The cash offer of $31 is subject to pro-ration and prior to July 23, 2014 I don’t think I had ever heard the word “pro-ration” used in a sentence.

I do see one being able to use the purchase of Bell Aliant shares as a way to get a hold of some BCE shares at a discount. BCE INC ended the day at $49.45. If you were to buy Bell Aliant for $30.81 a share, as a Bell Aliant shareholder, you are entitled to elect to receive, for each Bell Aliant common share:
1.	$31.00 in cash (the Cash Alternative);
2.	0.6371 of a BCE common share (the Share Alternative - equivalent to paying $48.44 for every BCE share)
3.	$7.75 in cash and 0.4778 of a BCE common share (the Cash and Share Alternative - equivalent to paying $48.26 for every BCE share)

Option 3 is the default election if you do not choose one of the other two options.

If you elect option 1 or option 2 you may, depending on the number of Bell Aliant common shares held by those holders electing those alternatives, be subject to pro-ration, meaning that you would receive a combination of cash and BCE common shares determined in the manner described in the Offer and Circular, so that the total consideration that BCE will pay is comprised of 25% in cash and 75% in BCE common shares. If you elect option 3, you will not be subject to pro-ration, meaning you are assured to receive $7.75 in cash and 0.4778 of a BCE common share for each Bell Aliant common share you tender.

I am exchanging my Bell Aliant preferred shares for the newly-issued preferred shares of BCE having the same financial terms as my existing Bell Aliant preferred shares.

I am keeping my Bell Aliant Bond. I emailed BCE Inc investor relations to find out what was going to happen with my BELL ALIANT CALLABLE 6.17% 26FB37 bond and was informed all the Bell Aliant bonds will remain outstanding bearing the same characteristics. 

For more FAQ, check out What would I receive in exchange for my Bell Aliant common shares?


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## humble_pie (Jun 7, 2009)

in my limited experience with takeovers - also with dutch auctions - pro-rating is very common.

options 1 & 2 are the extremes. The companies won't have enough cash to cover all-cash if too many shareholders so elect. Nor can they issue beyond a set number of BCE shares if too many shareholders elect all-shares. Therefore they might have to pro-rate.

the other fun detail is that nobody except the option 3 shareholders willl know what's exactly going to happen until the deed is done. They, at least, will be home free with their promised portion of cash & their promised allocation of shares.


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## gardner (Feb 13, 2014)

I looks like if you elect all shares and there are not enough to go around, the worst you can get is $7.75 in cash and 0.4778 of BCE.

I am trying to grok the details of "full or partial tax-deferred “rollover” by making a joint election with BCE pursuant to subsection 85(1) of the Tax Act". It seems like there is some tax election form needed that has to go to Bell.


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## My Own Advisor (Sep 24, 2012)

"in my limited experience with takeovers - also with dutch auctions - pro-rating is very common."

Funny, re: auctions 

I think b) is a safe bet but the reality is, nobody knows that the future holds including for BCE stock.


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## humble_pie (Jun 7, 2009)

gardner said:


> I looks like if you elect all shares and there are not enough to go around, the worst you can get is $7.75 in cash and 0.4778 of BCE.
> 
> I am trying to grok the details of "full or partial tax-deferred “rollover” by making a joint election with BCE pursuant to subsection 85(1) of the Tax Act". It seems like there is some tax election form needed that has to go to Bell.




i've survived a couple joint elections, they are a pita.

BCE should send you the form even if only electronically. Who knows, maybe they're doing it all online (they should as otherwise it's a lot of paper in hard copy.)

BCE is one of those huge dinosaur companies so it's possible they've set up a temporary investor relations desk to help perplexed shareholders get through the joint election form.

the key part of the JE form is where you will seek - notionally only, not in reality - to dispose of your old BA shares at their exact cost base. Then you will seek - again notionally only - to purchase your new BCE shares for the same dollar amount. In other words, the old BA cost simply gets rolled forwards.

please don't ask me why. When all is said & done the CRA is going to accept the elected cost base just like a little lamb. It's too bad some red tape has to happen.

without the joint election red tape, though, is there not the possibility that the investor will be deemed to have disposed of his BA shares for immediately taxable gain or loss?


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## Eclectic12 (Oct 20, 2010)

Too bad I can't ask you why ... in all of the takeovers I've experienced, the paperwork is the notice outlining the expected tax implications (i.e. deemed disposition or rollover where the new share ACB is what the old one used to be), the range of options including the default option and the deadline to phone in the instructions if anything other than the default option is desired.

I've never had forms to fill out, be they hard copy or electronic.

Best case was default action which required updating my ACB bookkeeping plus reconciling the "used to 100 old, is now 75 new shares" and the worst case added a phone call to the broker.


Cheers


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## humble_pie (Jun 7, 2009)

yes eclectic what you're describing is normal, i've done these too each:

but there are exceptional cases where the legal structure of a corporation combined with the particular nature of an envisaged takeover means that the CRA will deem a tendering shareholder to have disposed of his shares upon takeover.

in these cases, the joint election filing allows the old cost base to be rolled forward.

apparently the BCE/BA merger is one of these. It's discussed on the BCE website.

i was just trying to be helpful to gardner. Wondering why you'd choose to be sarcastic towards my message ...


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## yyz (Aug 11, 2013)

nortel'd said:


> I do see one being able to use the purchase of Bell Aliant shares as a way to get a hold of some BCE shares at a discount. BCE INC ended the day at $49.45. If you were to buy Bell Aliant for $30.81 a share, as a Bell Aliant shareholder, you are entitled to elect to receive, for each Bell Aliant common share:
> 1.	$31.00 in cash (the Cash Alternative);
> 2.	0.6371 of a BCE common share (the Share Alternative - equivalent to paying $48.44 for every BCE share)
> 3.	$7.75 in cash and 0.4778 of a BCE common share (the Cash and Share Alternative - equivalent to paying $48.26 for every BCE share)


Like I said above,BCE shares go ex div Sept 11.Expect the shares to fall by more than the dividend and the 0.6371 BCE share or the $7.75+0.4778 BCE share would mean the the BCE shares need to be at $48.65 when the deal closes.
I sold mine today and took the sure cash,left a bit on the table but got the all cash I wanted.


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## Eclectic12 (Oct 20, 2010)

humble_pie said:


> yes eclectic what you're describing is normal, i've done these too each:


That's where I wanted to ask ... in case I ever was hit with one that requires forms.




humble_pie said:


> ... but there are exceptional cases where the legal structure of a corporation combined with the particular nature of an envisaged takeover means that the CRA will deem a tendering shareholder to have disposed of his shares upon takeover.


Had those too ... though the more common version meant a "here's your cash, no choices and don't forget to report the capital gain/loss on your tax return".

For the less common - "here's cash and new shares, you can elect to rollover the old cost base by phoning in to the broker with instructions by Date/Time, other wise the default action is to report your capital gain/loss". 

For those that have affect me, they have been without any paperwork to fill out.




humble_pie said:


> ... apparently the BCE/BA merger is one of these. It's discussed on the BCE website.


I'll check it out so I'm prepared if I'm asked to fill out paperwork instead of phone instructions into the broker.




humble_pie said:


> ... i was just trying to be helpful to gardner. Wondering why you'd choose to be sarcastic towards my message ...


... didn't mean it as sarcasm ... more lamenting what appeared to shutdown of the question that was immediately jumping to mind (i.e. why this situation is different).


Cheers


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## pwm (Jan 19, 2012)

I'm like gardner. 

I'm confused about the "joint election form". I've already contacted TDDI and told them I want to elect option 3 from the letter I received from BCE. That is to take the 0.6371 BCE share per BA share. Now what? I can't find any "joint election" form on the BCE website anywhere. I wonder if it will appear in their "Download Centre" after the deal is complete?


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## gardner (Feb 13, 2014)

Well the form looks to be this one: http://www.cra-arc.gc.ca/E/pbg/tf/t2057/README.html
It is not obvious what needs to be put in there, or what to do with it when it's done. The CRA instructions seem to say that if there will be more than a few forms they want it all electronically from the company acquiring, so it would be Bell has to do most of the work it seems. Googling "t2057 form" leads to several investor relations pages from companies explaining how to use this form in various situations. I guess Bell will eventually have to collect these from the BA shareholders.

Bell's information on the acquisition (http://www.bce.ca/investors/shareholder-info/bell-aliant-privatization) say mainly



> you may, depending upon your circumstances, obtain a full or partial tax-deferred “rollover” by making a joint election with BCE pursuant to subsection 85(1) of the Tax Act (and the corresponding provisions of any applicable provincial legislation). If you elect the Share Alternative and you receive only BCE common shares, you may in certain circumstances obtain an automatic tax-deferred “rollover” and also be entitled to make a joint election.


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## humble_pie (Jun 7, 2009)

eclectic we can see that the big question goes: Why do a few companies going through reorg (merger/takeover/spinoff) require shareholders to file joint election returns if they want to roll capital gains forward?

you are saying that other companies accomplish this via simple phone instruction to brokers but honestly i have never heard of such a case. Is it truly possible to phone a discount broker & instruct them to change a cost base for a new security in a registered account? would you happen to have an example?

the answer to the Why question has to do with how the lawyers have structured the reorg.

i'm no expert in joint-election-land, only a raw amateur. In one big case that did affect me - the 2001 breakup of CP into 5 separate companies - the company's lawyers said via CP news releases that shareholders wishing to avoid immediate capital gains taxation could file paper joint elections, so i did.

as i recall, it was challenging because each of the 5 companies that were spun out - CP rail, CP ships, fording coal, fairmount hotels & pan-canadian energy - required its own individual filing. Plus each company had to be pro-rated according to a different formula.

i also recall that all paperwork was mailed out by CP & returned to CP. I kept copies, of course. These would really only be useful when i came to sell any of the 5 new companies *if* the CRA would question my reported capital gains/loss declaration at that time. In reality, i did eventually sell all of the 5 companies. I used the rolled over capital cost base. The CRA never said Boo.

in fairly recent canadian financial history, other big reorgs requiring joint election filings were BCE's spinoff of nortel & barrick's takeover of placer dome.

as i recall, CP informed shareholders very efficiently, even set up a temporary dedicated desk with an 800 phone to help shareholders prepare their joint elections.

it's possible that contemporary cost-cutting will mean that BCE/BA will offer little help, though. Still, i would believe that the securities acts of each province require publicly-traded companies to deal in good faith with their shareholders, who are, in fact, their owners; so helpful basic information ought to be forthcoming from BCE.

if i were a BA shareholder, i'd be scouring both websites for information. If the information provided is inadequate or unclear, i'd ask IR from one company or the other to be specific & to indicate their schedule for release of detailed info.

in addition, if i did *not* have substantial capital gains in BA to protect, i'd contemplate selling before the takeover record date (watch re capturing any final dividends, though) just so as to escape the somewhat messy situation.


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## pwm (Jan 19, 2012)

When I contacted TDDI to give them my instructions, I asked about the joint election form, and they said "it should be on the BCE website". I'm guessing it will appear later, or at least there will more info from them as the deal progresses.


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## gardner (Feb 13, 2014)

I spoke to TDDI just now to tender my BA shares for the all-stock deal option.
They had a checkbox or something on their side to say that the joint tax election was being made. He checked me off for that too.
The TD broker said that he had an expected date of October 7th for the tax forms for joint election to be available on the BCE web site.

I asked them whether they would be able to recompute my ACB for my BCE holdings after the dust settles and he thought that TDDI would do it automatically.

Now I guess I just wait and see.


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## nortel'd (Mar 20, 2012)

I think it is time for a 7 mile walk. The market should be closed by the time I get back. 

I was ready, as stated up-thread, to voluntarily exchange my non-registered BAF.PR.A for BCE Inc. Series AM Preferred Shares and make it my responsibility to obtain, complete and submit the necessary tax forms to BCE Inc. 

After speaking yesterday with a TD Waterhouse Direct Investing account representative, I am not sure what is best for me and have put my decision on hold for the next couple of trading days. 

I may decide to sell into the market then pick up or just pass on the BCE Inc. equivalent after the settlement. The ACB for my BAF.PR.A shares is $22.90 and DBRS gives BCE Inc. a Pfd -3H. 

For a comparison of what I might be settling for … Bell Aliant's BAF.PR.A and BCE Inc.’s existing BCE.PR.K look like FixedReset fraternal twins.

BAF.PR.A, FixedReset, 4.85%+209, reset 2016-3-16 trading right now for 23.50 (this I hold)

BCE.PR.K is a FixedReset, 4.15%+188 that will reset on 2016-12-31 and trading right now for 22.15. 

I have not been informed what the cost will be for the new BCE Inc Series AM at settlement time, leaving me no idea if I will have to declare a capital gain or loss. If BCE gives them a starting price of $25 it will look like I have a capital gain. I think a starting price of $25 will last for a millisecond.

Judging by what BCE.PR.K is trading for today, my expectation is, soon after the exchange the BCE Inc Series AM will be trading closer to $22 than $25. That being the case … I should be selling into the market without hesitation.

The other Bell Aliant Prefs
BAF.PR.C, FixedReset, 4.55%+309, reset on 2017-3-31 trading at 25.45
BAF.PR.E, FixedReset, 4.25%+264, reset 2018-9-30 trading at 24.70


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## pwm (Jan 19, 2012)

Thanks for the update gardner.


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## humble_pie (Jun 7, 2009)

a fine example of how the internet makes life so much easier.

it makes perfect sense to e-file the joint election, or at least most of it, which is how gardner's & pwm's messages are trending. 

only 13 years ago, with 5 companies spinning out of CPR plus the photocopies i wanted to keep for my files. there must have been 70-80 sheets of paper, including a hefty instructional document from CP on how-to-prepare-joint-election.

theoretically a broker should be able to e-collect most or all of the data that an investor needs to supply for a joint election. It would surprise me if any discount broker would collect this info for free, so it crosses my mind that they are being compensated by the reorg company (there are other routine services, principally communication services, that brokers render to publicly-traded companies for a fee.)

the answers that gardner & pwm are quoting from the TDDI representatives sound reasonable at this point in time. There will be updates later. Meanwhile everyone can see the advantages of watchmen such as these cmf members sharing distant early warnings via the forum.


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## Eclectic12 (Oct 20, 2010)

humble_pie said:


> eclectic we can see that the big question goes: Why do a few companies going through reorg (merger/takeover/spinoff) require shareholders to file joint election returns if they want to roll capital gains forward?


That would be the question ....




humble_pie said:


> you are saying that other companies accomplish this via simple phone instruction to brokers but honestly i have never heard of such a case... would you happen to have an example?


I'll have to check my records ... I seem to recall in my taxable account, the recent examples were conversions back to stock from trusts and before that, the conversion from stock to trust.




humble_pie said:


> Is it truly possible to phone a discount broker & instruct them to change a cost base for a new security in a registered account?


If it's a registered account - is there a need to adjust the cost base?
AFAICT, there won't be any tax implications so any ACB adjustments are for the investor's information/performance tracking (and might be possible online).




humble_pie said:


> the answer to the Why question has to do with how the lawyers have structured the reorg.


With the high cost of paper, I'd expect they'd want to avoid it ... but maybe the lawyers are getting paid by the pound ... 


Cheers


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## Canuck (Mar 13, 2012)

I'm opting for the $31 cash, I believe I can wait until Sept 18th to let TD know, is this correct?

Has it been stated anywhere when the funds will be deposited in my account? If it's going to be a month or more than I might just watch BA like a hawk for the next few days and sell it myself. Take a bit less, but get out of a possible messy situation and pay down my margin account

thanks for your help


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## pwm (Jan 19, 2012)

I see today in Webbroker that my BA shares were converted to BCE shares yesterday at the rate of 0.6371. They dropped the fraction of a BCE share as I believe they explained in the circular. Too bad they hadn't rounded up.


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## pwm (Jan 19, 2012)

Funny thing. The transactions in my taxable account and TFSA are different. In the taxable account BA sold for $30.43 and BCE bought at $48.07 which seems about right. TFSA is different. BA sold for $25.24 and BCE bought at $39.74. There are no taxable consequences in the TFSA so my cost base for BCE is irrelevant, but I'm wondering why there were different stock prices in the TFSA. 

Anyone else have numbers to share?


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## My Own Advisor (Sep 24, 2012)

Still a good call on your part I think pwm. I told my mother-in-law to do the same thing, I will have to follow-up with her.


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## gardner (Feb 13, 2014)

According to the activity report in my TDDI account, the deal seems to have gone through. I have 121 BCE for 190 BA - that's 0.6368 BCE per BA. I think that leaves me a buck fifty short.


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## My Own Advisor (Sep 24, 2012)

Thanks for update, just followed-up with MIL. Surprised you guys are coming up short? TDDI taking a cut here?


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## pwm (Jan 19, 2012)

gardner, if you don't mind me asking, what was the $ amount of your BA/BCE conversion?


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## gardner (Feb 13, 2014)

TDDI shows the transaction being for $5,782.51 for 121 BCE/190 BA. That's BCE @ 47.79 or BA @ 30.43 -- I should have taken the cash
My old book value for BCE was 2,529 and they have updated this to 2,529+5,782.51 = 8,311.51
I believe this is incorrect, assuming the tax rollover, since my book value on the BA I held was 4,933


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## pwm (Jan 19, 2012)

A strange and interesting transaction showed today in my TDDI account for BCE. Dated Sept 30, it's a credit for $42.93 with a code of CIL. Quantity is zero. Some sort of residue from the BA conversion I presume.


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## pwm (Jan 19, 2012)

There was a portion of a BCE share that they dropped in the conversion which I lost. It amounted to 0.8959 of a BCE share. Maybe that's what the $42.93 is for. That would put the BCE price at the time of conversion at $47.91 which seems about right. 

gardner, did you also get a credit?


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## Canuck (Mar 13, 2012)

I asked for all cash ($31) for my 1000 shares, and I got this

DISP 1000 = + $30,700

Acquired - 336 BCE = -$16,097

Drag, i just wanted my cash. Now I have to figure out what all this means with taxes and cost averages of BCE.


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## Canuck (Mar 13, 2012)

oh I'm also seeing a CIL for $46.55


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## HaroldCrump (Jun 10, 2009)

CIL = Cash in lieu

Not sure about this specific case, but that is what CIL transaction type usually means.


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## pwm (Jan 19, 2012)

Cash in lieu. That would be it. Thanks HaroldCrump. Nice to see I didn't lose any money on the partial share.


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## pwm (Jan 19, 2012)

I held BA in both my TFSAs and they also have a CIL credit today. The value of the credit for the partial share is the same BCE price of $47.91.


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## Islenska (May 4, 2011)

Anyone know if you did not process your BA shares by the due date (automatic conversion to BCE later?)

I just tendered 2090 BA for BCE today (conversion 0.6371 rate)

Action direct said this was the last day to select your option. I've been rather negligent following this!


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## pwm (Jan 19, 2012)

FYI. The tax instruction letter is now available on the BCE website. It's on a separate secure website.


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## gardner (Feb 13, 2014)

pwm said:


> did you also get a credit?


Yes. $2.50 or so. I assumed it was the missing 5% of a share. CIL is, perhaps, cash in lieu? (edit: duh, maybe if I read the other posts first)

I filled out the tax forms. Seemed pretty painless.


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## gardner (Feb 13, 2014)

Okay, this is weird. This morning TDDI says:



> Normally, by choosing the JTE, you would be able to defer the realization of any capital gains or losses and the resulting tax implications, but in this case, choosing the JTE means you will have realized gains/losses as applicable.
> 
> If you chose Option 3 or 4 and the JTE based on the assumption that you would be able to defer the taxes, please contact an Investment Representative at the number below to revise your instructions.
> 
> If you chose Option 3 or 4 and the JTE based on the assumption that it would result in a realized gain or loss, there is no action required on your part.


What the f** is going on?


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## pwm (Jan 19, 2012)

WTF? Where did you see that gardner?


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## gardner (Feb 13, 2014)

It was in a notification in TDDI as soon as I logged in.

I had a look on the BCE website and there is nothing new/different there. I had already filled out the forms on BCE's web-site so I assumed I was good to go.

TD's asking folks to phone in, and I haven't done that yet. When I talk to them, if I get a clear idea what's happening, I'll post something here.


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## pwm (Jan 19, 2012)

I did the same as you and thought I was done with this. I planned to consider my cost base to be the same as my proceeds for BA on my 2014 schedule 3 and have adjusted my ACB for BCE accordingly.

I'll be waiting to see what TD has to say. Thanks for the update gardner.


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## gardner (Feb 13, 2014)

I spoke to TDDI today. They weren't very clear what the issue was, but I gave them the same direction again -- I *want* to do a joint tax election and roll over the existing cost base to the BCE shares and defer capital gains until I sell those. He seemed to be saying that there had been some problem on the BCE end but it wasn't clear what.
My guess is that somewhere along the line they reversed the sense of a checkbox by mistake.

Meanwhile I have long since done the papers on the BCE site, so that should have been that.


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## Canuck (Mar 13, 2012)

this whole thing felt like a confusing mess to me, wish I just sold all my bell shares the day it was announced. I was going to fill out that tax election thing but I think I'm just going to declare the Capital gains on all my BA shares come tax time, even though I was given some BCE shares in lieu of money (which is what i asked for).

Is there any issue with doing this?


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## pwm (Jan 19, 2012)

Here's an update: 

I just got a phone call from a TDDI regarding the BA/BCE conversion. They are contacting all customers who elected option 3. Apparently they need to do so before the Nov 28 deadline because there was some error in the BCE forms or in some other part of the joint tax election process. His call to me was to clarify what I wanted to do and he said I could proceed to consider the ACB and proceeds for BA to be equal on my 2014 schedule 3 with no cap gain, and to consider the cap gain to accrue to the BCE shares. This is what I had understood to be the case. 

He was not exactly sure what the problem was, but he said that if anyone in our situation has not heard from TDDI within the next few days, they should call them and ask to make their wishes known.


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## kcowan (Jul 1, 2010)

Similarly with their bonds. By Nov 14th, we will know whether they can do a capital neutral transaction according to TDDI.


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## pwm (Jan 19, 2012)

New activity today in my TDDI account:
View attachment 2481


The book value of BA was $5957.99 before the conversion. I'm assuming I can use that number in my schedule 3 for both my proceeds and my coast base for the sale of BA.


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## gardner (Feb 13, 2014)

Same here. I guess the dust has finally settled.


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## JD @ CTE (Nov 12, 2014)

The joint tax election form (3 page CRA form) is complex. After completing the form through the company website, you still need to treat this properly on next year's tax return and get a good ACB for your BCE going forward. These are really important steps that are not discussed in the documents sent out. JD


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## pwm (Jan 19, 2012)

I'm bumping this thread because I got an email today from [email protected] with my T2057 form as a PDF file attachment. It's a 3 page form with 3 copies. The instructions are to sign and date and mail before the income tax deadline. One copy goes to CRA, another goes to BCE and the third is for my records. I wondered how they would handle the form I filled out at their Website, and now I know. I thought I might already be finished with this issue, but not quite yet.


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## gardner (Feb 13, 2014)

I got something like that from BCE in December -- they wanted it all filed before the new year. I filled it in and sent it off. Did you get that?


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## pwm (Jan 19, 2012)

gardner: No I didn't get anything from BCE. This is the first forms I've received to be signed and mailed.


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