Dime Bancorp Inc (fka DIMEQ)

[Madclown]

It would be a good idea to contact the IRS to obtain a “Letter Ruling” or “Private Letter Ruling” on the tax consequences in the event that Class Plaintiffs prevail and a distribution is made and received by a holder of the Dime LTWs. Here is a portion of the S-3a issued by Dime on 12.15.00 included within the “Tax Consequences” section of the filing. It appears that the proceeds may be taxable to the holder unless the holder was one who received the LTWs in the original distribution. I have bolded some of the pertinent language to consider.

“In the opinion of Sullivan & Cromwell, our counsel, the following summary describes the material United States federal income tax consequences relating to the distribution, receipt and ownership of an LTW. This summary is based upon the Internal Revenue Code of 1986, as amended, Treasury regulations issued thereunder, administrative pronouncements and judicial decisions, all as in effect as of the date hereof and all of which are subject to change, possibly with retroactive effect. This summary addresses only LTWs that are held as capital assets and does not address all of the tax consequences that may be relevant to holders of the LTWs in light of their particular circumstances or to certain types of holders subject to special treatment under the Internal Revenue Code, including, without limitation, certain financial institutions, dealers in securities, currencies or commodities, traders in securities who elect to apply a mark-to-market method of accounting, tax-exempt organizations, persons whose functional currency is not the U.S. dollar, persons who hold an LTW as a position in a "straddle" or as a part of a "hedging," "conversion" or "constructive sale" transaction for federal income tax purposes.

In addition, the discussion below applies only to a holder of our common stock who acquires the LTWs in the initial distribution and who is (i) a citizen or resident of the United States, (ii) a domestic corporation, (iii) an estate the income of which is includible in gross income for federal income tax purposes regardless of its source or (iv) a trust whose administration is subject to the primary supervision of a United States court and which has one or more United States persons who have the authority to control all substantial decisions of the trust. In this document, we refer to a stockholder that meets the preceding criteria as a "U.S. holder." This summary does not address the state, local or foreign tax consequences of the distribution, receipt and ownership of LTWs.”


Link :
http://www.secinfo.com/dsvrt.56gn.htm#1sl0