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.
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.