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Biotech / Medical : Immunex -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (643)12/19/2001 8:01:54 AM
From: LemurHouse  Read Replies (1) | Respond to of 656
 
<<<Why is the 44.50 tax free? Not saying that's not true but just wondering why it would be so. Was unable to find any reference on the Amgen site, that this part of the transaction could be tax free. TIA >>>

I'm sure you realize this, but I should point out that its $4.50 cash, not $44.50.

Here's the language that was taken from the transaction summary on the website. All of the early announcements made a point of stating that its a tax-free transaction.

Quote

Structure
Tax-free reorganization (Immunex shareholders will not be taxed to the extent that they exchange their Immunex stock for Amgen stock)

Terms
Immunex shareholders receive 0.44 shares of Amgen common stock and cash of $4.50 for each Immunex share

End Quote

All of this can be found at:
amgen.acquisitioninformation.com



To: aknahow who wrote (643)12/19/2001 10:07:28 AM
From: RCMac  Read Replies (2) | Respond to of 656
 
George,
The AMGN stock you receive for your IMNX stock is tax-free, the $4.50 cash is not (the cash is treated as a sale, therefore taxed as short-term or long-term capital gain).
The tax rule is that a stock-for-stock merger can be done tax-free, and that rule applies to the stock portion even if some cash is part of the purchase price (I believe, up to 20% cash).


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