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Abbott Laboratories Message Board

  • bgv123 bgv123 Dec 20, 2012 9:14 PM Flag

    Dtermining the Tax basis of ABT versus ABBV shares

    I know that, in general, one allocates tax basis from the previously held shares of ABT across the new ABT and ABBV based on their relative market value at the time of the split/spin-off. In some instances companies issue relative valuations for the purpose of providing their shareholders with a basis for making this determination. It does not seem like ABT has done this. In some instances one looks to the closing price on the first day of trading. I have not been involved in an instance where the company began trading "when issued" shares prior to the actual date of the split/spin-off. Has anyone consulted with anyone who seems to know how the relative market value of ABT versus ABBV will be determined for the purposes of establishing tax basis?

    Sentiment: Hold

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    • ABBV will be spun off on 1/1/13 and, thus technically, doesn't start trading as a separate company until 1/2/13.

      The allocation based on market value can be made after the close of trading on 1/2/13.

      The guidance from Abbott on the Hospira spin-off was based on the average high/low price on the first day Abbott and Hospira traded as separate companies.

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