Q&A: Dominic Coyle answers a selection of readers' financial queries.

Last July, you dealt with a query regarding a holding in South Wharf (formerly Ardagh plc) and a spin-off in which I received 7,818 preferred ordinary shares - Ardagh Glass Ltd. The latter redeemed a third of these shares at €4 each last year.

I have received an offer from Caona plc to purchase the residue (5,212) of these Ardagh Glass shares at €4 each or, alternatively, they will offer two Caona shares plus €18 in cash for every five shares presently held. In my case, if I accepted the "alternative", I would hold 2,084 Caona shares at a cost of €1 each. Caona is not listed, has not traded and is beneficially owned by Yeoman, with Paul Coulson and his associates as directors.

I am wondering should I continue to hold a small investment in Caona in view of the turn-up in the fortunes of Ardagh Glass Ltd in recent times?

For CGT purposes, would this be considered a first-time purchase or would a portion of the purchase price be set-off against my original investment in South Wharf (Ardagh plc)?

Mr P.T., Kilkenny

As you say, the value of shares in what is now the private company Ardagh Glass Ltd, have been rising recently. Indeed, that rise has led to some disquiet at the price offered by Caona which, as you say, is a body in which Paul Coulson and his investment vehicle Yeoman have a heavy interest.

Under rules in Guernsey, where Ardagh Glass Ltd is incorporated, Caona only needed to get 75 per cent approval for its offer and it has comfortably passed that level so this is effectively a done deal - notwithstanding the fact that some disgruntled shareholders are threatening legal action.

What you opt for depends on your view of the outlook for Caona. The value of the assets they are purchasing has been increasing and, clearly, Mr Coulson and Co believe this is a good investment. To date, he has called that position accurately.

If you believe the soon-to-be-former Ardagh Glass will continue to thrive, take the partial share option. The same applies if you think the price is low. The only reason for taking the cash is if you believe the cycle is turning and that the outlook for Ardagh/Caona's business is bleak.

On the issue of capital gains tax, this will not be considered a first-time purchase. It will, rather, operate in the same way as the Eircom/Eircell/Vodafone deal. As such, capital gains will only be an issue when you ultimately sell the Caona shares you would acquire under the deal.

Linux shares

I purchased 100 VA Linux Systems shares in 2000. I think they were listed on the Nasdaq at the time. What is their current status and is it possible to sell them now - albeit at a loss?

Ms N.B., email

VA Linux is still a listing company although, as you say, the shares have lost some of their lustre since 2000.

The company is now called VA Software, a change that was made in December 2001 following a general meeting of shareholders.

Earlier this week, the stock was trading at $1.67, a long way short of the $50 level it was trading at when you bought the stock at the height of the dotcom boom.

Can you sell them? Of course. That can be done either through an Irish broker or directly in the US market, which might prove easier. I assume you probably bought them in the US rather than through an Irish dealer in the first place.

Card switch

I would like to switch credit cards. My current card (NIB) always sends its monthly statement mid-month, which is no good to me because I need to claim expenses as soon as possible into the month. The statement is always dated the first of the month but never arrives until around the 16th.

Anyway I rang Bank of Ireland to see if I could get one of their credit cards. I'm not really interested in one of their transfer options. I reckon I can run down one card and begin using the other. I usually clear my balance each month.

My query is about the €40 Government charge. If I switch cards will I be charged €40 twice. Bank of Ireland was very unclear and said I probably would not be charged. When I asked NIB how I could cancel my card, and whether I would be charged the €40, they reckoned I would be charged because once you use a card in a calendar year you are due the charge.

So, my query is when is the best time to switch cards or can any bank guarantee that I will only pay it once in the year that I switch?

Mr M.McG., Dublin

The most important thing is to do nothing until next month. Why next month? Well the regime is changing so that it will no longer penalise people like yourself who are looking to switch to a card provider that more closely meets your particular needs.

Until now, if you switched cards you would be charged €40 in respect of each card, even though you only had one card at any one time. This was clearly an impediment to competition,

In his first Budget last December, the Minister for Finance, Brian Cowen, announced that the €40 stamp duty would only be imposed once a year on whichever credit cards people held.

However, he stopped short of providing immediate relief, announcing only that the date of the new regime would be announced in the Finance Bill. That has since been published and, for credit and charge cards, the new regime kicks in on April 2nd.

Double charging on ATM and Laser cards as a result of switching banks will continue until January 1st, 2006.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, D'Olier Street, Dublin 2, or email to dcoyle@irish-times.ie. This column is a reader service and is not intended to replace professional advice. Due to the volume of mail, there may be a delay in answering queries. All suitable queries will be answered through the columns of the newspaper. No personal correspondence will be entered into.