In my recent posts discussing two purchases of DKW, one reason offered for those buys was the potential of a call by the owner of the call warrant. Bought 100 DKW at 22.86 Bought 50 DKW @ 23.07 When that call is exercised, the owner of the TC has to be paid par value, in this case $25, plus accrued interest.
The owner of the call warrant for DKW has given notice of its intent to exercise it. Structured Asset Trust Unit Repackagings (SATURNS) Series 2003-11 Trust Receipt of Notice of Intent to Exercise Warrants in Full
I would add this caveat. The call warrant owner is under no obligation to go through with the transaction, as noted in the linked notice above: " Under the terms of the Warrants, delivery of the notice does not give rise to an obligation on the part of the Warrantholder to pay the specified call price; and if by 4 p.m. New York time on the Business Day prior to the Intended Settlement Date the party exercising the Warrants has not paid the required call price, the Call Notice will be effectively rescinded, in which case settlement of the relevant Warrants would not occur and the Warrants would continue in effect and could be exercised on a subsequent date. If settlement of the Warrants occurs pursuant to the Call Notice on the Intended Settlement Date, then Class A Unitholders will receive the par value ($25) plus accrued interest of each Class A Unit. . ." The settlement date is 11/4/2010.
I am familiar with one case, XFJ, where there was a notice of the call, but the owner of the call warrant did not tender the proceeds. Consequently, XFJ is still trading. Bought 50 XFJ at 25.38 Added 50 XFJ in Roth at 25.3
I elected to sell the 50 shares of DKW bought in the Roth at $23.07 at $25.20. I will keep the other 100, bought in a taxable account, and hope that the call warrant owner tenders the cash.