In a week or so we should *know* what the valuation placed on the FNT shares distributed. Some think they know they will be valued at. On 0.175 October 17, 2005 FNF distributed 0.175 shares of FNT for each share of FNF held. FNF announced publicly that this would be considered a dividend, but they have not publicly announced what the amount was. Yahoo reports "18-Oct-05 $ 4.06 Cash Dividend". Some have reported that FNF told them that the amount would be the average of the High and the Low on the NYSE. If we are to get data from Yahoo or nyse.com for that date, that would correspond to $3.893750 per share. Here is a table:
Method: Basis /FNT: Div / FNF: Avg High-Low 22.250 3.893750 Open 23.300 4.077500 Close 21.900 3.832500
I wonder what the difference between the Adj Close* and Close means in this context. $0.45. Hmmm. What does it matter? You pay income tax on the amount. Plus that amount becomes your basis for the distributed FNT shares. If FNF cared enough about providing timely information for the shareholders, this information would be available at http://www.investor.fnf.com/faq.cfm page. It's not. So get your bets in. $4.06? $3.893750? $4.0775? $3.8325? I'll go with none of the above. So when will we find out? I think they will have to say so when they send out the 1099s. The amount will be in addition to the $11 per share in cash dividends you would have gotten if you held FNF throughout 2005. So guess I can't complain too much, now that I think of it! I suspect they will not provide the information in time for the brokers to send out their 1099s accurately on time. So be alert for a revised 1099 from your broker.
rudfox, I got my 1099 today and it didn't have a value for the FNT dividend either.
So I called FNF Investor Relations and the young man said that the tfr agent has sent that info to the brokers. He added that he thought it was probably $22.25 which he said was the average between the high and low of the first day.
He also said that the transfer agent doesn't maintain shareholder lists other than nominees so it will definitely go to the broker if held in street name.