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Transactions for Morgan Stanley Eaton Vance acquisition

Questions about updating prices or transactions in Fund Manager

Postby jboxman » Sun Dec 04, 2022 11:40 am

Hi,

I've reviewed several similar threads ("AMC acquisition of CKEC ") that I found, but I haven't been able to synthesize this and apply it to my specific scenario, which is as follows.

According to "Morgan Stanley Closes Acquisition of Eaton Vance":

Morgan Stanley (NYSE: MS) announced today that it has completed the previously announced acquisition of Eaton Vance Corp. in a stock and cash transaction. Eaton Vance common stockholders were offered 0.5833 Morgan Stanley common shares and $28.25 per share in cash for each Eaton Vance common share, and had the opportunity to elect to receive the merger consideration all in cash or all in stock, subject to proration and adjustment. As provided under the merger agreement, Eaton Vance shareholders also received a special dividend of $4.25 per share, which was paid on December 18, 2020 to shareholders of record on December 4, 2020.


For anyone that searches later, this is also considered a "cash to boot" deal, an acquisition for stock and cash.

So I have 59 shares of EV purchased across 5 lots. I received 1666.75 in cash and 34.4147 shares of MS upon completion of this acquisition. The FMV of MS is assumed to be 76.870 for the purposes of this transaction. The total value received per share, cash and stock, is $73.09, which is comprised of $28.25 per share in cash and $44.838271 per share in stock, or 0.5833 times the FMV of MS.

Recording this in Quicken was highly complicated and involved selling shares, adding and removing shares, and so forth, to maintain correct cost basis per lot. I don't know how/if any of that needs to be replicated in FM? This might be easier than I'm imagining it.

Any suggestions are appreciated, thanks!
jboxman
 
Posts: 3
Joined: Sun Apr 28, 2019 12:36 pm

Postby Mark » Sun Dec 04, 2022 12:06 pm

Hi jboxman,

This sounds like you need 2 transactions: a distributed distribution of 1666.75 and then a split with a ratio of 34.4147 for 59. After this, change the name, symbol, and CUSIP in the investment’s properties.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11576
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby jboxman » Sun Dec 04, 2022 12:28 pm

Mark wrote:Hi jboxman,

This sounds like you need 2 transactions: a distributed distribution of 1666.75 and then a split with a ratio of 34.4147 for 59. After this, change the name, symbol, and CUSIP in the investment’s properties.


Hi,

Is it possible to use a Transfer In to a new MS symbol to retain the original history of the now delisted EV?

Thanks!
jboxman
 
Posts: 3
Joined: Sun Apr 28, 2019 12:36 pm

Postby Mark » Mon Dec 05, 2022 9:32 am

Hi jboxman,

Yes, you could use the "Transfer Between" to move all the shares into a new investment. Share out would be 59 and shares in would be 34.4147. You would also have to give a market value to the shares being transferred.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11576
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ


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