via_newsgroup
Sat Jul 24 15:47:38 CDT 2004
In microsoft.public.money, fj wrote:
>
>"Cal Learner-- MVP" wrote :
>> In microsoft.public.money, fj wrote:
>>
>> >
>> >Anyway, here's my problem. I owned shares of company ABC, which recently
>> >was bought out ( or mergered with, depends how you look at it) by company
>> >XYZ. One of my ABC shares now became 0.442 shares of company XYZ. How do
>I
>> >do the transaction in Money? I tried doing a "Record a special activity",
>> >but the only options whic come up are "transfer an account" or "record a
>> >split".Since the older version of Quicken would have handled it, I must
>be
>> >missing something.
>>
>> If your version supports it, you can do
>> Portfolio->RecordASpecialActivity->RecordAMerger.
>>
>> In any version you can do a 442 for 1000 split, change the symbol,
>> rename the security, and optionally enter a note in the comments for
>> the investment.
>
>
>Thanks for the help Cal, but I now have another couple of problems. By the
>way, the Canadian version does not seem to support the RecordAMerger option.
Yes, the Canadian version works the same as US Standard.
>
>1. Before the merger went through, I set up the XYZ company in my watch list
>to see what the news would do to it's share price. Now when I try to
>manually change the name of ABC to XYZ, Money won't let me use the same name
>and/or stock symbol. I deleted XYZ from my watch list, but I still can't
>change the name or symbol..
In Portfolio->WorkWithInvestments->ChooseASpecificInvestment choose
XYZ. In the Details, blank the symbol, and change the name to
something you will never want to use such as ZZ0407.
>
>2. I now have a stock, Nexfor(NF), which merged with Norbord(NBD), and they
>spun off a new company called Frasier(FPS). My original 300 shares of NF
>now became 300 shares of NBD, and I also received 60 shares of FPS. How do I
>record this transaction?
There is more than one way, and no way I know is pretty.
How you record this will depend on the tax treatment. If the tax
treatment was that this is not a taxable event, and the handling is
similar to a common way spinoffs are handled in the US (I don't know
if that is a valid guess tho). Lets say you paid $3000 total for
your original 300 shares of NF. Further suppose that 20% of the
basis will go with the FPS. shares.
What I would do is to modify the original Buy transaction to make
the Total $2250 (.75*3000). I would add a memo to the translation
such as "original buy 300 NF total $3000, 2004-7-21 25% of basis
spun off to FPS".
I would create a new Buy of FPS dated the same as the original NF
buy, for 60 shares of FPS with Total of $750. I would add of
"original buy 300 NF total $3000, 25% of basis spun off to FPS; 75%
to FPS "
I would then go to details for NF, change the symbol to NBD, change
the name, and add a Comment about the spinoff.
Complex, yes. But the basis amounts and dates are now in accordance
with the way these things usually are handled. You will want to
My second-best way would be even more obscure involving a split and
remove shares and add shares.
Searching I see that FPS would be Fraser.
http://www.norbord.com/FAQ-July-2004.pdf says
:10. How will the adjusted cost base be determined?
: The cost base for your Nexfor shares will be divided between Norbord and Fraser
:Papers and determined by the relative trading values of Norbord and Fraser Papers for
:the period of July 5 ? 16, 2004.
: We will issue guidance regarding the adjusted cost base calculations on or around
:July 19, 2004.
http://www.newswire.ca/en/releases/archive/July2004/20/c4039.html
says the basis split will be 75%- 25%.