Well as others have pointed out the details are bit complex if not downright murky. However my understanding is that the 1 for 6 split will mean instead of my 2800 shares of WIN I will have 466. In addition I will get 1 share of CSAL the REIT for every 5 shares of WIN so I'll end up with 93 shares of CSAL plus a bit of cash for the fractional shares of both. Both companies will pay a dividend and at least for the first quarter or more the combined dividend of both will be 70cents/ year. This will most certainly not be a good thing in the short term but it is hoped by management and some analysts to hold potential for increased value and dividends over the next 5 years. I am not selling but I am not holding my breath either. GLL
You should be a buyer if you are a risk taker. Here's a recent quote:
"Windstream Holdings Inc. (NASDAQ: WIN) was reiterated as Buy with $10 price objective at Merrill Lynch. The firm said that the implied value for Communications Sales & Leasing means investors are getting the Windstream OpCo at or nearly free."
Myself, I remain skeptical that we will see $10/ share or the post spin off equivalent any time soon but OTOH am holding onto my 2800 shares as a bit of a gamble. The dividend is, after all, despite the cut still a lot better than most other places to park some small portion of one's portfolio. GLL