T2 Warrants: conversion expires 25 October
Until close of play on the ASX this Wednesday T2 instalment receipt holders have three options left. These are:
1. Convert T2 Instalment receipts into Instalment Warrants. The remaining warrants currently available expire this Wednesday. They are offered by ABN Amro, Commonwealth Securities, Deutsche Bank, Macquarie Bank and UBS Warburg.
2. Pay the second instalment by 2nd November.
3. Defaulting on your second payment. This option is generally not recommended as the T2 trustee needs to sell them and deduct fees and brokerage leaving you with the remaining proceeds as Telstra shares.
Investors may also convert their Telstra shares into instalment warrants. The result being that they receive cash back whilst retaining the risks and benefits of exposure to the underlying shares. Conversion into warrants is not considered a disposal for Capital Gains Tax purposes.