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Covidien plc Message Board

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  • anonymouswizard anonymouswizard Feb 13, 2011 11:16 AM Flag


    This cashes out holders of under 100 shares. Keeps shareholder correspondence costs down (although this is not as big a deal as it use to be due to many holders getting proxies and other info in electronic form.). A side effect is that if you own an amount of shares not ending in two zeroes, the excess is cashed out. Cashing out is at market prices, so no implications on other holders other than companies cash and share count decrease slightly. More efficient than a general buyback of shares.

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    • The answer is yes, if you have 100 you will end up with 100. This will knock the number of shareholders from about 28,000 down to 6-8000. Saves about $300,000 a year.

      • 1 Reply to averagejoefortyco
      • I haven't had the opportunity to read the proxy yet. However I wonder if this even applies to those that own shares via brokerages like fidelity or schwab? Technically they own the shares on your behalf which also why they can use your shares to loan to shorts etc. It seems to me this would only be possible for those that own shares directly, or at least I hope so because I personally do not want to tendered out of partial lots.

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