The KMP offer can't be sweetened enough for those who thought they were buying a lifetime Annuity:) If the vote fails the price drops like a rock :) just hate to see cheap shares:)
Gay_in_hotlanta, Tell us all about your 5 post history. Care to list some of your other weasel logins?
I had purchased KMP at various prices, the last when it pulled back to 75. Then it recovered to 80 and then in one day now it is $95!! OK,there will be a tax bill that I wasn't planning on, but it will be paid from the profits.
“Midol”? --- “Gay_in_ atlanta”? --- that sez it all. You’re obviously insecure about your masculinity --- and your investing prowess. Philpu -- 420 posts, but nothing worth reading.
He admires the multi-billionaire who makes more than a billion in one day by screwing over KMP holders, but gives ordinary investors -- many senior citizens -- a hard time for knocking a bad deal for them.
Now, stop diddling around with those few shares you trade during your coffee breaks and get to back to work in that sewer pipe.
SJOHNS - as my previous entries suggested, you are correct that the greatest relative pressure is on KMP holders, and their vote for this tx is in question. (The KMR's and EPB's are shoe-ins.) If the KMP vote fails -- or shows signs of failing before deadline -- KMI has the option of sweeting the take with added cash and/or KMI shares; this is what is affecting the downward pressure on KMNI in my view.
Remember that when first presented, Kinder said that a KMI share price ~34 would be in inducement for all to vote the tx -- tragic mistake of offering hope probably generated my one of the dozen of i-bankers. The tx structure of requiring simultaneous and matching vote from all 2 MLP's was also flawed.
Mr.geek not at all homophobic but not wired to travel in that lane. I read the Share and Unit holders would be allowed to vote on the merger. I wonder if this will be a democratic vote taking all the votes of the totality of the entities and have the majority rule or a more federalistic vote where each entity votes separate ? If the deal is delayed the PPS would drop like a rock short term and I get get in much lower than the prevailing PPS. I do think that " gay_in_atlanta "is a professional troll. Phil_the_not_a_homophobe
A sweetened offer for KMP would not be sweet enough to satisfy those that thought they bought a lifetime Annuity. .
Gay_in_atlanta Yup like clockwork, a troll with a 4 post history appears . Probably made a dollar trolling I-85 rest areas. You are a obvious short a few in more ways than one. I have made a few bucks following Rich,s lead would take be willing to take a few more. A few a dwelling on there taxes instead of there nice gain big gain. If tough when the winners whine. Go back to what ever you do in Atlanta. Phil
Yup, like clockwork, one of the board trolls appears. Probably made a “killing” --- on what, flipping maybe 10 or 20 shares?
SEC is the right way to go on this because the press release gave false information to investors. Yeah, imagine that, Rich Kinder, a 20+% owner of KMI who benefits most from the deal, lying to KMP investors?
Disagree -- no risk that KMR and EPB votes will succeed on their terms, and no reason that sweetening KMP offer would trigger anything different.
Besides complaining to the SEC how about complaining to the FTC, ICC, IRS and Dr.Phil might put you on his show. And as a last resort check with a true tax professional that can give some ideas to mitigate your coming tax bill but don't forget to bank your big gain. Then as a last resort take two Midol and have a nap.
Why try to reason with the board ignoramuses? Instead, FILE A COMPLAINT about KM with the SEC for lying to investors in the 6-page PFD (dated 02/23/14) on the KM website. I gave the info. recently, but the post removed, despite a 9/2 up/down recommendation count. Hmmm…did KM complain to Yahoo?
The board is mostly populated by traders, short-term holders, and small fry. Some like the deal because they made a fast gain, but this post is directed to LONG-TERM (not just a few years) holders with sizable holdings. The latter don't like the deal because it is massively inequitable to KMP holders, relative to KMI and KMR holders. Long-term KMP holders with sizable holdings will have a large unexpected income spike (resulting in a large tax bill, much of it at ordinary rates), all being dumped on them in one tax year. In contrast, KMI and KMR holders will pay NO taxes. Furthermore, the present and future tax depreciation is being “stolen” (but it’s not called stealing when you use legal loopholes) from KMP and handed over to KMI. (Just look at the 08/10/14 investor presentation.)
Yes, you can move on from KMP and invest in another tax-deferred, high-yielding vehicle, but you can’t undo the damages from the inequitable tax treatment. You can’t undo the damage to estate planning for those planning to pass their units to heirs.
Yes, you can keep your KMI shares and believe Kinder’s “spin about KMP holders being better off long-term. If you're in a high-tax bracket, there is no chance of making an equivalent return within the next ten years. Just read the presentation on the KM website. Also read the WF analysis showing that even “average” KMP holders are effectively selling at a discount, not a premium, because of taxes. But, anyway, do you really want to invest with Richard Kinder? KMI has not only massively UNDERPERFORMED its closest peers (WMB and EPD) since it went public again in 2011, but has even underperformed KMP.
File an SEC complaint.
I don't believe you but ...
if so assuming you have 3,000 shares of KMP you now have a capital gain around 50 or 60K.and if you have held the shares for 5 years you may have accumulated 80K in ordinary income that you have NOT paid income tax on, and your complaining and whining because you have to pay income tax on 130K that you made from investing around 135K?
disclaimer: these are very rough numbers and are meant to just ballpark what some think they are entitled to.
if the deal for KMP gets sweetened (not likely) they will have to also sweeten it for EPB and KMR.
if you want to be in KMI over the long haul the place to enter is in KMR.
Purchasing KMP now, will cause an unneccessary tax event upon completion of the merger, while KMR is a straight stock for stock swap with no tax event.
There is stil 2-3% arbitrage difference between KMI and KMR which is yours if you enter via KMR
On what grounds would the FTC not grant the conversion ? Its a merger of a single business just different organizational entities there aren't any monopoly concerns or other related harm to the consumers.
The IRS has nothing to do with the FTC
Someone posted the FTC approved the KMP to KMI conversion very very quickly. Shouldn't we be asking why? It appears the Feds want it to happen before 12/31/2014.
Is this because it will generate many millions in unexpected tax revenues? Also, KMP profits were never taxable at the corporate level and deferred at the unit owner level. KMI profits will be taxable...at both the corporate and stockholder level.
So it seems the Feds (IRS anyway) are very motivated to make this happen ASAP.