Re: Spin-off with cash-in-lieu

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Posted by Steve on September 07, 2007 at 22:14:43:

In Reply to: Re: Spin-off with cash-in-lieu posted by Mark on September 07, 2007 at 19:39:50:

As mentioned in my initial message, that's the first thing I tried.

Try it out and see what happens. On my computer, the end result is a share count of of 65.99967 shares or whatever of ALE no matter how I try to manipulate the numbers. Try 0.667 shares or 0.6667 shares or 0.666667 or 0.6 shares...

There should be an easier way to deal with this kind of problem.

: : Mark,

: : On 8/27/04 I purchased 200 shares of Allete for $26.49/share.

: : Allete underwent a 1:3 reverse split on 9/21/04 along with a spin-off of 1 share of Adesa for each share of Allete (200 shares total in this case).

: : Thus far, Fund Manager accounts for this collective transaction by recording ownership of 66.667 shares of Allete. FM does not permit me to record $20.92 received as cash-in-lieu of the 0.6667 shares of Allete. I've tried to fudge by "selling" the 0.6667 shares of Allete on the day of the reorganization, but the program won't permit me to do that either.

: : Thank you for any help.

: Hi Steve,

: Was there any capital returned from Allete to pay for the purchased Adesa shares?

: From what you've described, this sounds like you would record:

: - a 1 for 3 split in Allete
: - a purchase of 66.6667 shares of Adesa
: - a sell of 0.6667 shares of Adesa for cash

: Why can't you record a sell of 0.6667 shares of Adesa? Do you get some error message?

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

Replies:

• Re: Spin-off with cash-in-lieu Mark 10:32:33 09/08/07 (1)
  • Re: Spin-off with cash-in-lieu Steve 11:11:54 09/08/07 (0)