ACE Aviation Holdings Inc. nears the end of its wind-up with a Dutch auction set to expire on Jan. 10, 2008.

20% of ACE shares are held by Canadians, the rest are held by foreign investors, according to Canaccord Adams analyst Tom Varesh. ACE wants to buy back roughly 40% of its outstanding shares, but the cash that those who tender to the Dutch auction receive is considered entirely a dividend, he told clients in a note.

U.S. investors are subject to a withholding tax of 5% to 15%, while other foreign investors are subject to a similar tax of 25%, Mr. Varesh said. This makes tendering somewhat unattractive since U.S. investors would have to wait more than a year to get any refund of the tax, he added.

Posted: 12|28|07 at 8:58 pm. Filed under: Auction News.