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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: coopie who wrote (47138)	10/30/1999 9:47:00 PM
From: Maya	Read Replies (1) \| Respond to of 50808

quote.bloomberg.com

To: coopie who wrote (47138)	10/31/1999 12:29:00 AM
From: John Rieman	Read Replies (4) \| Respond to of 50808

coopie. My understanding is that the Semi side will be taxed for the transaction at the corporate level. It's over $100M in tax. Harmonic get $45M cash, The new C-Cube will have $150+M. By March, the assets of the corporation will be over $300M. Shareholders don't pay tax until they sell. It will cause holders some headaches though.......................... the software............... better-investing.org The story........................... better-investing.org Tracking corporate spin-offs with the NAIC Personal Record Keeper for Windows Reprinted from the September 1996 BITS -------------------------------------------------------------------------------- by Matt Willms During the 1990s, corporations have been reorganizing themselves to maximize shareholder wealth. One common method used to unlock value is the corporate spin-off. According to the IRS, a spin-off occurs when an existing corporation distributes stock in a company it previously controlled without requiring shareholders to sell the shares issued. One recent example of a spin-off occurred in July of 1996 when Minnesota Mining & Manufacturing distributed shares of Imation Corporation. The IRS requires a cost adjustment by shareholders of the company issuing the spin-off. The original tax basis (cost) of your shares in the issuing company prior to the distribution must be adjusted to reflect the value of the new company spin-off. Corporations give their shareholders the necessary tax information to properly adjust their tax basis, but it is up to you to update your own tax records. If you've ever had to manually apply a spin-off, you know all to well how time consuming and tedious this transaction activity can be. The process is even more daunting if you own multiple lots of the issuing company (ie. shares bought at different times as in a dividend reinvestment plan) because each lot needs adjustment. Thank goodness the NAIC Personal Record Keeper easily handles these complicated transactions with great accuracy! Let's assume you were the proud owner of 19 lots of Minnesota Mining & Manufacturing (MMM) totaling 230 shares on 6/28/96, when you received notice of the company spin-off of Imation Corp (IMN). In this case, for every 10 shares of MMM you owned, you received 1 share of IMN. For proper tax accounting, the predistribution cost basis of MMM must be adjusted by 96.059%, leaving 3.941% of the original cost basis to be assigned to the new IMN stock. To manually adjust your original MMM shares would require you to calculate, by hand, the new cost basis for each of the 19 different lots owned. Next, you would need to create 19 new lots for the IMN shares received and assign each lot its own proper cost basis proportion. Finally, you then would need to reconcile all the pre-spin off and post-spin off data for number of shares, cost basis, market values, and gains/losses (better put another pot of coffee on). However, if using the NAIC Personal Record Keeper to automatically adjust for spin-off activity, the entire process is much simpler and certainly less prone to mistakes. Simply select the Spin-Off/ Merger feature found on the Assets Menu. Next, enter the security symbols involved and some basic information for the newly received shares: name, industry classification, size classification and a recent market price. Using the spin-off information received from the issuing company, enter the number of shares received in the new company for each share held of the issuer, and the percentage cost basis adjustment. That's all there is to it. NAIC Personal Record Keeper searches all portfolios within the system owning the issuing company, adjusts all current lots' cost basis amounts, and then creates the new records for the spin-off shares received.