Baxalta ( BXLT ) Acquired by Shire ( PLC )

[reddragon]

How do I record this? I received 7 shares of Shire ( SHPG ) for 52 shares of BXLT and also received 936 dollars cash and 134.42 dollars cash-in-lieu on 06/03/2016.

[Mark]

Hi reddragon,

Since you received cash-in-lieu you probably received more than exactly 7 shares. You'll want to know how many shares, or what the real ratio was so you can record this. Record the following:

- Split with a ratio of 7.xxx for 52
- Distribution of $936
- Sell of 0.xxx for $134.42

Also, change the name/symbol/CUSIP etc under "Properties...".

[reddragon]

For every 1 share of Baxalta I received .1482/shares of Shire & 18 dollars cash. I,m still not sure how to record this. This is not recorded as a split is it? Baxalta was acquired. Please help

[Mark]

Yes, I would use a split, and change the name/symbol as I mentioned. 52 * 0.1482 = 7.7064. Record your split at a ratio of 0.1482 for 1. Record the sell of partial shares for 0.7064 shares. Basically, the "xxx" in my instructions below is 7064.

[reddragon]

If I used a split how will I record a gain loss for the sale of Baxalta? Also The fractional shares that were sold were based on the price of Shire not Baxalta.

[Mark]

Recording a split doesn't change any of your tax cost basis. All your original cost basis remains for when you sell any of the shares.

[reddragon]

Thanks your instructions worked out well.

[reddragon]

In another account I applied the same formula and everything is great except I,m Supposed to have 11 shares of Shire after I record split at .1482 to 1. I had 75 shares * .1482 =11.12

Cash -in-lieu was 21.88 so I sold of fractional share to get 21.88

I,m left with 10.995 shares of shire in the portfolio. i,m supposed to have 11 how do I adjust this to make it 11 so my numbers add up end of month?

[Mark]

Hi reddragon,

Try turning up your share digit display under "Options / General Preferences... / Display" so you can see shares to 6 digits. Check your transactions and share balance after each transaction. Did you really have exactly 75 shares to start with? After your split, did you really have 11.12 shares exactly? Did you sell exactly 0.12 shares? If so, then you will end up with 11 shares.

[reddragon]

Got it . Thanks