Re: Buy out/Merger of two companies

[ Message Board ] [ Archives ] [ Search ]

Posted by Mark on January 18, 2007 at 23:25:29:

In Reply to: Re: Buy out/Merger of two companies posted by Willis Dillon on January 18, 2007 at 22:50:24:

: : : I don't know if I recorded the recent buyout of BellSouth by AT&T in my portfolio correctly or not. I own both of them.
: : : I treated the buyout of BellSouth's total value as a return of Capital. I then took the value received and used it for the total purchase value of the new AT&T shares.
: : : Other than the cash for partial share of AT&T, I think this should then be regarded by FM as a non-taxable event.
: : : I didn't see any other way to handle it--If there is please advise.

: : Hi Willis,

: : Another way is to use a split transaction. The ratio for a split can be anything you want, so you can record a split with a ratio of:

: : for

: : You can then just rename this investment to the new name. This has the added benefit of keeping all your historical returns/buys/sells, instead of starting over with a single purchase in a new investment.

: : Thanks,
: : Mark
: : --
: : Fund Manager - Portfolio Management Software

:
: After I change the name of BellSouth to AT&T I now have two separate AT&T investments appearing in my sub-Portfolio which I don't particularly want. How can I merge these two investments into one? Do I need to revert back to the way I originally outlined above? In the past I have always used cost averaging to determine my cost basis.

Hi Willis,

Yes, this makes sense. If you want to combine them, you can use your original method. There is no way to really "merge" 2 separate investment files in Fund Manager.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

Replies: