Mon, Dec 29, 2014, 9:46 AM EST - U.S. Markets close in 6 hrs 14 mins


% | $
Quotes you view appear here for quick access.

Fidelity National Financial, Inc. Message Board

  • rudfox rudfox Jan 3, 2014 3:44 PM Flag

    FNF Buyout of LPS Lender Processing Services

    Is the LPS takeover treated as a sale, or is there some other treatment?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 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.

      See how you interpret it.

    • I would assume LPS shraeholders take gains on the cash portion. On the stock portion they carry their basis forward. The circular should have an entire section on tax treatment.

      • 1 Reply to dontbetheball
      • 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.

35.6466-0.0034(-0.01%)9:46 AMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.