CI Financial Inc., Canada's third-largest mutual fund company, approved the terms yesterday of its long-awaited conversion into an income trust. CI shareholders can receive one income trust unit for each common share of the company. Alternatively, they will have the option to receive a combination of class B limited partnership units (known as exchangeable LP units) and special voting units of the fund and "possibly" fund units, CI Financial said. Holders of the exchangeable units will be entitled to vote at meetings of the unitholders and, after Jan. 1, 2007, exchange their units for trust units, one-for-one. There will be a limited number of exchangeable units issued and Sun Life Financial Inc., which holds a 35-per-cent interest in CI Financial, will be given priority over other CI Financial shareholders to receive those securities, the company said. CIX (TSX) rose 52 cents to $30.05.
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