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Author: Gabrielle Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121146  
Subject: Cost basis for new Reutes stock? Date: 2/13/1998 3:20 PM
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Hi, Roy!

I have a question for you. Reuters is doing a huge cash-back thing with their shareholders of record 2/18. This payment will be considered (for holders of the ADS) to be dividend income from foreign sources.

Any idea how this affects the cost basis? Or any idea how I can figure it out?

The official line is: "American Depository Share (ADS) holders will receive 13 new ADSs plus the US dollar equivalent of £81.60 in cash in return for every 15 ADSs held."

If we make the math easy...for example, if one has 150 shares of RTRSY, with a cost basis of 50, one would end up with 130 shares of the new stock and 916 pounds sterling. Is there (maybe this is wishful thinking)somehow no accounting for a new cost basis?, or is the new cost basis the same as the original, or is the cost basis the price of the new shares once they are issued?

Thanks!

Gabrielle
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