More Income Trust Fallout
Reuters reports that "Canada's IPO steamroller was in high gear before sputtering and stalling in October due to the federal government's decision to stop issuing advance tax rulings to companies seeking to convert to income trusts, according to a survey released on Thursday.
Between Jan. 1 and Sept. 30, 2005, there were 86 initial public offerings worth C$5.3 billion ($4.5 billion), the PricewaterhouseCoopers survey said. That compares with 56 IPOs worth C$3.4 billion for the same period in 2004. Of the 2005 total, 37 were income trust conversions valued at C$4.3 billion, more than 80 percent of the total value.
The third quarter was particularly active with 17 new income trusts worth C$2.4 billion.
But almost all activity stalled after Ottawa's Sept. 19 decision on advance tax rulings, said Ross Sinclair, IPO and income trusts services leader for PricewaterhouseCoopers."
So much for lower oil prices and rising interest rates Ralph!
"Mr. Goodale fiercely disputed this yesterday, saying it's unfair to blame him for the selloff in trusts because rising interest rates and softening energy prices played a role too. "For the argument to be made that there's only one single cause and that it's all a concoction of the government I think is a bit extreme and a bit misleading.""
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