New Issue: Bank of Montreal prices $250,000 8% reverse exchangeables tied to Baidu

By Toni Weeks

San Diego, Dec. 29 - Bank of Montreal priced $250,000 of 8% annualized reverse exchangeable notes due March 30, 2012 linked to the American Depositary Shares of Baidu, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Baidu ADSs close below the trigger price - 70% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of Baidu ADSs equal to $1,000 divided by the initial share price or, at the issuer's option, the cash value of those shares.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	Baidu, Inc. (Symbol: BIDU)
Amount:	$250,000
Maturity date:	March 30, 2012
Coupon:	8%, payable monthly
Price:	Par
Payout at maturity:	Par, unless Baidu ADSs fall below $81.55, 70% of initial ADS price, during life of notes and finish below initial share price, in which case number of Baidu shares equal to $1,000 divided by initial ADS price or value of those shares in cash
Initial price:	$116.50
Trigger price:	$81.55, 70% of initial
Pricing date:	Dec. 28
Settlement date:	Dec. 30
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366QW52

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