I'm with Scottrade and they were posted after hours today. Looks like our cost basis for ESRX shares will be 57.67 going forward. If I did my math right the price of MEDCO stock was 75.51 at the time of conversion. Anyone else come up with the same numbers??
When I used the 57.67, which was the price at market close the math worked out exactly for my shares. I have to check but I believe that 19% of the cash payment won't be taxed. I am trying to find out how 81% of the cash will be looked at. The cost basis of the ESRX shares @ 57.67 plus 19% of the cash was exactly the cost basis that I had with my MHS shares. Any Accountants out there have a thought here??
Exchange of MHS for ESRX and cash showed up in my Schwab account last night. They declared the entire cash payment as a long term capital gain and the entire cost basis for the block of MHS was assigned to the block of ESRX shares received (and I’m now showing an unrealized cap loss for ESRX).
However, the merger proposal (Google search “express scripts merger proposal”) from Express Scripts (of 11/15/2011 on page 143) indicates otherwise. Basically, the total value of ESRX received (yesterday’s close) + cash received – total cost basis of MHS surrendered should be cap gain; cost basis of ESRX then equals yesterday’s close.
Disclaimer: I’m not an accountant – just interpreting what I’ve read.