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Re: Ooops

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Posted by Mark on May 23, 2000 at 16:15:48:

In Reply to: Ooops posted by Brian M on May 21, 2000 at 19:05:09:

: : : Does anyone have any guidelines on how to set up and handle the following:
: : : BankNorth Group (BKNG) is acquired by Peoples Heritage Financial Group (PHBK)
: : : on 5/10 but the new company keeps the name BankNorth Group and trades under
: : : the symbol of BKNGD. BKNG holders get 1.825 shares for each of their BKNG
: : : shares PLUS a cash settlement for frational shares (based on $22.9992 /sh)

: : : Thanks for your help.

: : --------------------------------------------------------------

: : Hi Jim,

: : 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.

: : Brian.

: --------------------------------------------------------------------------

: Sorry Jim, after re-reading you post, it appears that BKNG was you investment, not PHBK. Just substitute BKNG for PHBK in the above post.


You can handle this by recording 2 transactions:

1) A split for 1.825 for 1
2) A distributed distribution for the amount you receive in cash for
any fractional shares.

You can then just edit your investment under "Investment Properties..."
to modify the "Name" and "Symbol" fields to their new values.

Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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