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Re: Merger of two stock into one

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Posted by Mark on April 08, 2004 at 22:37:42:

In Reply to: Merger of two stock into one posted by rtkiefer on April 08, 2004 at 16:40:22:

: I hold shares in both Travelers A and B common stocks. Each of these stocks have different prices. Yesterday both stocks were exchanged (thru a company merger) into shares of St Paul Travelers. How can I reconcile my account to accurately reflect the combining of the two stocks into a new third stock. I tried using the split function but now I have two listings for the St Paul stock.

Hi rtkiefer,

The solution I would suggest is as you did, to use the split function, and
have 2 St Paul investments. They each have a different history, with a
different split ratio to get them to the current St Paul shares, so combining
them before the merger date is messy. If you'd really like to have just
1 St Paul investment, you could create it with an opening share balance
on the date of the merger, for the combined cost basis of your other
2 investments. You would lose the transaction history here, but you would
have only 1 investment going forward.

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP



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