Re: Spin-off with cash-in-lieu

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Posted by Mark on September 07, 2007 at 19:39:50:

In Reply to: Spin-off with cash-in-lieu posted by Steve on September 07, 2007 at 16:38:55:

: 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 Steve 22:14:43 09/07/07 (2)
  • 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)