Re: Company mergers
In Reply to: Company mergers posted by Jim Howard on May 21, 2000 at 13:45:01:
: Does anyone have any guidelines on how to set up and handle the following:
: Thanks for your help.
I reciently went thru the same thing with my company except that acquiring company's symbol didn't change to a new one. Here's a suggestion similar to what I did. I don't know if it's the best way, but all the numbers "balance".
A) Get all the prices and transactions updated for PHBK (I assume this was your investment) thru 5/9.
B) Copy your PHBK.DAT file (if that is the file name) to a new file - BKNGD.DAT so that you have a duplicate and set the symbol to BKNGD. I don't think this step is really neccessary (you could just rename PHDK.DAT and change the symbol), but when I did mine, I didn't want to "mess" with an "active" investment and prefered to "play" with a duplicate.
C) Update the prices for that BKNGD.DAT file for 5/10 onward.
D) Record a split for 5/10 of 1.825 to 1 and use the Note function to describe what happened.
E) Check View/Split adjusted.
F) CLOSE PHBK from any portfolios you have and add BKNGD. Don't delete PHBK.DAT in case you want to look at the "pre-acq" transactions.
G) The reports will now show your total shares for BKNGD as of 5/10. You will get a Check/documentation from your Broker or whoever handles your shares at a later date showing a sell of .xxx shares on 5/10. Record this in FM as a sell.
H) Repeat the above steps if you hold PHBK in multiple accounts. Note - When I went thru this, in my 401K, they didn't mess with the fractional share stuff, but I had to record a "fake" .001 share sell to match up with my statement. In my other accounts, I got any fractional shares in a check or deposited to the Money Market fund.
I hope this helps. It's really not as hard as it seems. Maybe Mark can give some tips to make things clearer.
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