Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Pretty sure it is not half. Think it is a function of the last close of ABT as a combined company vs. the market price per share of the two seperate. Just to get a number while awaiting more official word I used the following values to adjust basis for the two new co's. ABT pre-spin close value $65.5. ABT (new) open $31.34, ABBV open $34.16. New ABT basis factor: $31.34/$65.5 = 47.847% of original ABT basis. ABBV basis factor: $34.16/$65.5 = 52.153% of original ABT basis. Applied this approach to each position. Haven't dealt with a deal like this before so I too am looking for confimation on basis adjustment.

Best Regards
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.