Info about ALU and NOK?

A while ago NOK offered .55 NOK for every share of ALU. Unfortunately, not enough shares were tendered during the initial and subsequent offers, and NOK was unable to get the required percentage of ALU shares that would allow it to delist ALU on the Paris stock exchange.

I still hold ALU depository shares (I did not tender any) covered by calls (mar16 $4.00, jun16 $4.50) and now wonder about the possible repercussions to my shares and calls depending on future Nokia actions, such as:

  1. Purchasing enough additional shares to allow delisting.
  2. Something else? - I’m not certain what other actions Nokia can take, maybe renew its tender offer.

I looked for ALU on the OCC website (http://www.theocc.com/default.jsp) but did not find helpful information other than the initial offers for .55 NOK per ALU share.

I’d appreciate any additional information, if you have any, so I might make an intelligent decision. I think the worst thing that can happen is that ALU is delisted and trading moves to some weird sheet.

But maybe there are other bad things.

Thanks,
Bob

I had some left over from when I started dividend reinvestment with ATT, which spun off Lucent. I was “rich” for a while in the bubble days, then it turned into a pumpkin and was bought by Alcatel and almost Nokia. I sold my shares in December to clean up my life.

Do the same, move the money to SWKS. I it dead.

I still hold ALU depository shares (I did not tender any) covered by calls (mar16 $4.00, jun16 $4.50) and now wonder about the possible repercussions to my shares…

According to OCC memo #38480, dated Feb 23, 2016,

J.P. Morgan Chase (the Depositary) has announced the termination of the Deposit Agreement for Alcatel Lucent (ALU) American Depositary Shares (ADSs), effective after the close on February 24, 2016. The last day of trading for the ALU shares on NYSE will be February 24, 2016.

My shares show no market value, but there is a cost value. The covering calls are still in place, and show some value.

According to the memo,

As a result of the termination, ALU ADS shareholders will have until at least April 25, 2016 to surrender 
their ADSs and receive delivery of the underlying shares of Alcatel Lucent. As soon as practicable after 
that date, the Depositary may sell any remaining deposited shares. ALU ADSs which are not surrendered 
prior to the sale date will be converted upon surrender into the right to receive the pro rata portion of the 
net proceeds of the sale of those shares, less any applicable fees or withholdings, if any.

Contract Adjustment

DATE: ???
NEW DELIVERABLE
PER CONTRACT: Proceeds received per ALU ADS ($ x 100), less any applicable fees or withholdings, if any

I’d appreciate any information from anyone who has been in a similar situation. Thanks,

Bob