Monies received from B shares are not taxed until convert them to $. I have not seen what options we will have, but normally they'll issue the B shares, and we'll get 2 shares for every one share of GSK stock we own because of the ADR. One option would be to hold them, and not convert them to cash value until you are ready. Another option might be to roll them over to an ordinary shares of GSK. Both these options would not be taxable. If and when you convert them to cash, well then, that would be taxable. If you do cash them in, it wont' be counted as ordinary income, but a capital gain instead.
So, in summary, this is not a "special dividend." It will be actual shares that you will be able to cash in.
This "special" divy will be handed out by the end of 1st Qtr 2015 per GSK's website. Got to their website and look in the investor section. There is a wealth of information for you. Also, the normal Xdiv date is today. You needed to own yesterday to get the 3rd Qtr 2014 dividend (61 cents). Still not too late to pick up two more 61 cent quarterly dividends, and then the big $2.66 special dividend.
GlaxoSmithKline plc today announces a major 3-part inter-conditional transaction with Novartis AG involving its Consumer Healthcare, Vaccines and Oncology businesses (the “Transaction”). In summary:
--GSK and Novartis will create a new world-leading Consumer Healthcare business with 2013 pro forma revenues of £6.5 billion. GSK will have majority control with an equity interest of 63.5%
--GSK will acquire Novartis’ global Vaccines business (excluding influenza vaccines) for an initial cash consideration of $5.25 billion with subsequent potential milestone payments of up to $1.8 billion and ongoing royalties
--GSK will divest its marketed Oncology portfolio, related R&D activities and rights to its AKT inhibitor and also grant of commercialisation partner rights for future oncology products to Novartis for an aggregate cash consideration of $16 billion (of which up to $1.5 billion depends on the results of the COMBI-d trial)
--GSK shareholders to receive £4 billion capital return funded by net cash transaction proceeds and expected to be delivered via a B share scheme
--Transaction expected to be accretive to core EPS from first year, reflecting execution of intended B share scheme, and thereafter with growing contribution from 2017 as projected cost savings and new growth opportunities are delivered
--Transaction is expected to complete during the first half of 2015 subject to approvals
Own GSK when the transaction is completed and they announce it. Per the GSK website, it should happen sometime in the 1st Qtr 2015.
This is all you need to read:
Treatment with LOR plus phen was not associated with exacerbation of potential 5HT AEs compared to LOR alone. Common AEs during the trial were consistent with prior experience with these agents. The combination of LOR BID and phen BID more than doubled weight loss achieved compared to LOR alone."
Been holding for over 2 1/2 years now. I am sure I am not the only one is has my shares tucked away.
IMHO, the best speculative bet on WS right now is Arena Pharm. Obesity is an epidemic. More and more health care providers are accepting Belviq. Just bought another 5000 shares today. I think we moving on up!
Is Hedgie still around?
Well, since it has already dropped almost 20% from its all time high, I would think the downsize risk is fairly low. If it does drop 10%, well guess what, you are break even and holding an equity that represents the 7th largest pharma in the world at a two year low. Might I add that will continue to pay 5% dividends. The potential for a nice 2015 is fairly promising!
$4.49 if dividends coming our way if you jump in today! $4.49 / $45.45 = 9.88% ROI just in dividends!
3rd Qtr 2014 $0.61
4th Qtr 2014 $0.61
1st Qtr 2015 $0.61
Novartis Div $2.66
Who wouldn't want that kind of return in the short term? Talk about defensive stocks, is there any better?
The Novartis deal will be around $2.66 per share! 6.4B US$ / 4.8B shares outstanding = $1.33 X 2 ADR = $2.66.
A shipment of 101 vials of the vaccine will arrive tomorrow or Thursday from the U.S., enabling inoculations to begin this week, Genton said. Glaxo (GSK)'s experimental immunization is based on a live version of a genetically modified chimpanzee virus that contains an Ebola gene. A representative for Glaxo declined to comment.
What about it moron? What about the $4.49 in dividends being paid out in the next 4 months? I expect GSK approaching all time highs again. What about that?
Zero idea is 100% correct ! The US GSK is 2 shares to 1 on the London GSK exchange. There is 4.8B shares outstanding, but that equates to 2.4B on the ADR shares we hold.
Shortsp500 is an idiot.
Lowest PE of its peers: 15.5
Lowest Price to Sales of its peers: 2.4 (which is out f'in standing!)
Highest Dividend Yield of its peers: 5.7%
GSK Summary; SAFE equity to sink your cash in, even in market corrections.
Only way this goes under $40 is if the whole market crashes! If so, the lower this goes, the higher the yield. A yield, might I add, that is safe through the end of 2015. $4.49 in dividends coming and you will miss out waiting for something that is never going to come to fruition.
By the way, you shorts better cover because the word is getting out on what a steal GSK is right now! What idiot would short a stock that has a $100B market cap, near it's 52 week low, and pays a 5.7% dividend?
shortsp500, surely you are not short this stock? If you are, I question your mental aptitude.