Just saw this item on the Canadian government’s effort to curtail the income trust, which has gained popularity as a structure for Canadian corporations. The government wants to put the brakes on trusts to stem a drop in tax revenues.
This is challenging news for Yellow Pages Group, which has had great success operating as an income trust.
Update: Here is a wider sampling of coverage on this developing story.
MarketWatch notes that YPG took a nearly 19 percent hit to its unit price today as a result of this development.
This article in the Globe and Mail describes the announcement as a “bombshell.”
Bloomberg reports that one analyst at Merrill Lynch is predicted a “collapse” in fund valuations.