For walling off the goofy investments and allowing the core business to be evaluated. And interest rates are headed down so get ready for another round of refi's. Good things on the way.
I got my CIL credited on Jan 6. No action required. I have never had to inquire or remind a broker of CIL. I hope this was a singular mistake on their part.
On stock held in street name, I figure that a broker will have multiple users due CIL, and it is up to the broker to sell some whole shares and distribute money for the CIL. It may be that FNF is involved in each CIL, but I doubt it.
Your bit about a class action against FNF was weird. Have you ever filled out the paperwork for a class action? CIL values are always less than a share.
It turns out my broker, Ameritrade, had their heads up their butt. First, they said that there would be none, but now they reversed that and made an adjustment to my account on the 13th after I called them back on the 13th. They first told me that none would be paid per their documentation, so I can only wonder if other LPS shareholders faced a similar experience. I needed to have the fractional share paid through that personal adjustment to my account and not when the merger finalized with the other settlements.
On the FNF site in the Investor FAQs there is now a link to a PDF
"Tax basis Information for former LPS stockholders". It says, if I read correctly, that the new FNF shares will have a basis equal to $32.25 -- the closing price on Jan 2 -- or a similar value if a slightly different valuation is selected. The basis of the LPS shares will not affect the FNF shares received. Instead that basis will be the basis of a SELL of the LPS shares. The proceeds of the LPS shares will be the cash received ($28.102 per each LPS share) plus ($32.25 *0.28742)for each LPS share.
See how you interpret it.
I am not so sure about the accounting, but it seems that the broker is using $32.32, the close on the third, as the value of the FNF shares received.
Thanks. While I cannot find it now, some such document I read had made me think this is total purchase accounting, as opposed to the common kind which is at least partially a non-taxable event. In those you usually have a document that the takeover company has asked for an IRS private letter to that effect.
I will be staying tuned. If I remember correctly, FNF in the past has not been a leader in explaining the tax effects simply to the small investor. On the other hand, they have been pretty good at generating value.
I would assume LPS shraeholders take gains on the cash portion. On the stock portion they carry their basis forward. The circular should have an entire section on tax treatment.
The use of the average of high and low prices for Jan 2 gives $32.435 per share valuation for FNF. Since that is above both the open=32.33 and close=32.25 for the day, a different valuation, such as the open would make sense to me. We will just have to see what the brokers do.
Nothing better than to have a stock I own consider "strategic alternatives"! I'm guessing the auto parts gets sold, the restaurants bundled and spun off. The question is what multiple will be applied to the core financial services business.