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Stocks B / Berkshire Hathaway


Subject:  Re: Phillips 66 to form MLP Date:  12/14/2012  8:49 AM
Author:  buyn2hold Number:  196941 of 236247

The MLP will not necessarily be distributed to existing shareholders. I read the article and didn't see anything one way or the other. MPC recently did the same thing and existing shareholders did not automatically get shares of the newly formed MLP (ticker MPLX). Most of the MPLX shares were kept by the company and the rest sold on the open market. Existing shareholders benefitted from the extra cash that came into the company. If they wanted MPLX shares they had to buy them on the open market. It would surprise me if Phillips did anything differently because it would create problems for anyone that holds shares in a tax advantaged account. They would end up being taxed twice.
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