Ok, here's where I get confused wrt KMI, etc... here's the SEC filing:
·KMP unitholders will receive 2.1931 KMI shares and $10.77 in cash for each KMP unit. This results in a price of $89.98 per unit, a 12 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 11.4 percent based on the July 16 closing price reference date used by the parties during the negotiation of the transaction.
·KMR shareholders will receive 2.4849 KMI shares for each share of KMR. This results in a price of $89.75 per share, a 16.5 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 16 percent based on the July 16 reference date used by the parties in the negotiation. The parties negotiated consideration for KMR shares equal to the consideration for KMP units, using the July 16 reference date.
Does this mean they use the 7/16 share prices when they close, or the actual closing prices on the day that they close? If it's the former, then KMP and KMR are selling at a premium today. If it's the latter, then it will all depend on the closing price on or about 11/24, especially the closing price of KMI.
And then there's this from my broker about how to "elect" to receive the merger on shares of KMP (nothing about KMR yet):
I was surprised to get a notice form my brokerage giving me alternatives about how my post-merger Kinder Morgan shares would be treated:
In connection with the merger agreement Kinder Morgan Energy Partners LP & Kinder Morgan
Inc. entered into, KMP unit holders may elect to receive one or more of the following
options for each common unit owned:
Opt 01: Stock Election - 2.4849 shares of KMI Class P stock, (subject to
proration).
Opt 02: Cash Election - $91.72 cash, without interest, (subject to proration).
Opt 03: Mixed Election- 2.1931 shares of KMI Class P common stock & $10.77 cash.
KMP unit holders will be deemed to have made a "mixed election" if no election is made.
With the same 2.4849 election option for KMP as for KMR.... oh, hell, I'm just plain confused at this point and will likely just wait it out -- probably too late to do anything anyway -- I took the mixed election for KMP shares as I plan to sell most of the converted shares anyways. |
