We will get .81 of an Express Scripts share plus $28.80 for each Medco share.
Using today's closing price of $55.50 (as a guess), each of our MHS shares is valued at .81* $55.50 + $28.80, or about $73.76.
Subtract your cost basis for each share to get the gain. (Hopefully you know how to derive that. In my case, I got the shares as a Merck spinoff, and my cost basis ends up being $5.42)
In the above scenario, 39% of what we get is cash, therefore 39% of the gain is taxable even without selling anything.
If the shares were held for more than a year, that 39% of the gain qualifies for the 15% tax rate.
MHS to ESRX shares... The swing date for the shares to transfer is listed as 4-3-2012. We will find out tomorrow what the prices were for each for calculations. Not sure when during the day that will happen.
Not sure what the exact prices were at the time of merger, but I am guessing that my 2K shares of medco @ 51.65 should be about 45K to the plus side. Hate to say I told you so, but I've been saying that this deal would go through since last summer. I'm riding this horse for quite a nice haul.... GL to all who held on.