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In my IRA I own shares of El Paso Energy, who is being acquired by Kinder Morgan, Inc. They are offering three options for me at this time:
1. 0.9635 of a share of Kinder Morgan's Class P valued at $38.60
2. $25.91 in cash per share
3. 0.4187 of a share of Kinder Morgan AND $14.65 in cash
The value of Kinder Morgan was based on closing price on March 23, 2012.
I know that usually the acquiring company is the one whose stock declines after the merger, but will it decline more than $13 which would justify taking the cash buy-out? Should I take the stock trade? Or should I just sell El Paso now? How do I evaluate this decision?

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