Ben_S

Traditional IRA

Due to a tax treaty between the 2 countries, US brokers should not withhold Canadian tax in US investors' IRA accounts. However, I've heard of a number of brokers being unable/unwilling to comply with this. For example, I've heard that while Interactive Brokers does not withhold for Toronto listed stocks, they do for NYSE listed Canadian companies. I've heard that Scottrade and Schwab also improperly withhold. But I've heard that TD Ameritrade and Etrade may be good. But does anyone know of any others (or has anyone ever have issues with these 2)? Thank you

No problem. I believe the only material risk would be if the offer were canceled, but in my opinion this is highly unlikely (especially if you wait until close to offer expiration to put the trade on). Here is the SEC filing: https://www.sec.gov/Archives/edgar/data/29915/000094787115000617/ss449561_ex9901.htm

For those interested in these types of situations, there is a small (~$400 upside) but very low risk potential arb opportunity in DOW's spin-off of OLN. DOW has started an exchange offer (set to expire October 1) through which DOW shareholders can exchange their shares for OLN shares at a 10% discount (though subject to a cap on the max ratio). There is an odd lot provision that gives holders of fewer than 100 shares priority treatment. So buying/tendering 99 DOW shares shortly before offer expiration and shorting a corresponding number of OLN shares could be interesting.