wish I knew -- sum of the two should be better than the two parts
have not seen/heard anything about a dividend for the new IGT so that would add consideribley to the bottom line + efficiencies from the combination
IMO- things will be moving up as they start reporting info
I doubt you actually lost money on the transaction - could be your brokerage's acctg
Im certain I had a nice gain on the same transaction - even for shares bought on 4/6
my fidelity acct shows a cost basis of 20.19 for the new shares - which seems too high to me
I bought more today as I believe there will be nice synergies from this combination
my fidelity acct now shows a cost basis of 20.19 - scottrade still shows -0-
Im thinkin neither of these accts will show a 2015 gain on this transaction
when I sell the shares in my scottrade acct I will need to provide a cost basis for taxes
same here - wondering if it will be reported as paying us 14.3396/sh for our old IGT and -0- cost basis on our new IGT.. seems like there should be a cost basis of the diff in 4/6 sp 17.70 and 14.3396 ????
hopefully someone can figure this out for tax planning
my scottrade acct handled everything Tues am - new shares - pd off margin, etc, etc
had same buys in fidelity acct and they are still dragging the process out - have seen
same before - fidelity likes to skim all the margin they can out of a deal so they drag
any margin process out to the max
does anyone have an idea of tax reporting by brokerages on this transaction??
will the cash be reported as proceeds on a sale of your igt ? and what value given to the new IGT shares??
Relax -- your original shares are GONE as you knew they would be
you did good on this deal - don't sell anything
there are many funds that hold S&P socks, etc that have to shed their positions in a deal like this --- and some just don't trust their hard earned money in EU companies
lookin forward to tomorrow
so - your cost for the 181sh of newco is about $3330 - right?
if newco opens where gteck closed =$22.36USD [see GTKYY ]
your 181 newco shares will be worth $4047 tomorrow
I don't think the avg igt price used in the calc has anything to do with the newco price
gteck shares will convert directly 1-1 to newco
Im just thinkin
this may be the reason for the big volume in igt and GTK Friday
someone correct me if I am wrong:
Say you bought 550sh igt Friday @ $17.77 = cost $8885
you get 550x$14.3396 = $7169 cash
you also get 550 x .1819 = 100sh NEWIGT
net cost $8885 - $7169 = $1715 for the 100sh of NEWIGT
IF GTK converts to NEWIGT at Fridaay close of $21.15
you made $4.00/sh over the weekend on your new share purchase???
IF GTK/IGT goes up on the 7th you do even better
IF it goes down you don't do as well
Im thinkin it will hold or rise.......
we get $14.3396/sh cash = 65cents extra
+ the max number = .1819sh of new IGT/ igt sh
not sure where GTECH/holdco will be on the 7th but things are looking good at this point
thanks - looks like we are looking at same assumptions
looking forward to see price of new IGT a few days after the close.....
Im thinking the newco will be a keeper
Im trying to sort this out
is this how you came to your number??
assuming the random drawn avg price of gtech comes out to $20.50
then the "Exchange Ratio" would be $4.56/$20.50 = .2027
which is above the max allowable of .1819 - right??
resulting in a small increase in the cash piece above the original $13.69/igt sh
so the cash cost to gtech would be higher
the number of HOLDCO shares delivered to holders of igt would be .1819 HOLDCO/igt share - the max
and the value of those shares would be less than the $21.31 used in the original calc
resulting in an overall smaller value to the igt shareholder at closing
not taking into acct that the new HOLDCO/IGT shares may rise significantly immediately after the transaction
15 would be quite a bargain - in seven days you get to swap for something around $18
see if you can wish it down there and I will load up the truck
as I said before - there are funds and organizations whose charter does not allow
the new IGT issue to be held in their portfolio - ie S&P only, no foreign, etc.
this is simple Q-end housecleaning on both sides igt and gtec
if it were not for some big buyers grabbing these shares the sp would be lower
for instance- S&P index funds must dump igt and cannot hold the new IGT --- others will be jumping on the new IGT train -- but few are interested in getting involved in the transaction
looking forward to see mid April
"NEW YORK, March 27, 2015 /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices:
S&P 500 constituent Windstream Holdings Inc. (WIN) will replace International Game Technology (IGT) in the S&P MidCap 400,"
deal is "done"
igt share price is insignificant
gtk share price is key
there are some shareholders in both camps that don't want to participate
and end up with the new IGT shares in accounts
some may not even be allowed to have foreign co stock in accts on both sides of the pond
lets see what happens with the new IGT stock after April 7th
that is all that matters significantly at this point
thanks - was thinking they would have to swap the shares in one transaction -- and it will be nice if they deposit the $$ that soon...
lookin forward to see what the new IGT does
not worried == got shares and exercising options on more Friday
just curious as to why gtec WAS going down...
given that IGT will be a "fantastic investment"