Dec 30 2006
Sector Size
The size of the business trust sector and the proliferation of new issues was put to a halt by the announcement at the end of October, that distributions by new issues would be taxed at 34%.The planned conversions of BCE and Telus from equity into trusts were plans that stopped and reversed with the tax news. The number of business trusts could have grown by 2 good quality and widely-held companies, but didn’t. And so the value of the market was also contained without the addition of units that would have boosted business trust values by 50%.
The number of business trusts peaked at 106 as of the end of November.
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