2002 Ruling 2001-0116073 - Certain Tax Consequences of buy/bump/sell -- summary under Subsection 69(11)

Where prior to the acquisition of Target, Target transfers assets on a rollover basis to a wholly-owned subsidiary of Target ("Xco"), and then following the amalgamation of Target with Newco, the cost to Amalco of the Xco shares is "bumped" under s. 88(1)(d) and those shares sold to an unrelated third party, s. 69(11) will not deem the disposition of the property acquired by Amalco on the amalgamation of Newco and Target to be for fair market value of proceeds.