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Author: prime13 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 136  
Subject: proxy Date: 11/24/2001 2:08 PM
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I got my proxy statement today. I suppose it is a legal necessity but I don't know if I have ever seen a vote that was in such little doubt. Quoting from the front page letter:

"Tyco, through TGN Holdings, currently owns approximately 89% of TyCom's outstanding shares and has agreed to vote its TyCom common shares in favor of approval of the amalgamation agreement."

I doubt that my shares will have much of an impact on the election here.

Anyway, I was surprised to see that the amalgamation will be a taxable exchange. See page 34 of the proxy. Right now TyCom is trading at about my average basis for it so it won't effect me much. However I guess that I will be hoping that Tyco's price drops, or at least doesn't go up much between now and the exchange to save a bit on taxes. Maybe we can get Tyce to help us here. ;-)

prime13
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Author: prime13 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 121 of 136
Subject: Re: proxy Date: 11/24/2001 2:15 PM
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Oops, make that Tice, not Tyce.

As they say on the Tyco board, Have a Happy Shiny day.

prime13

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Author: pknoerr Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 122 of 136
Subject: Re: proxy Date: 11/25/2001 10:11 PM
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Prime,

Yep I got my proxy over the holiday weekend too. I figured that TCM wouldn't even give us a proxy for the merger. I agree that it must be a legal requirement. TCM is also above my aggregate buy price. but I'm not real worked up about the $2000 in additional income it will create. I'm sort of surprised that TYC is declaring it as a taxable deal. I suspect that it will be a loss for most of the TCM shareholders, so that it will help most folks taxes. But it looks like TYC is showing signs of a possible breakout so my taxes may work out to more.....

PK




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Author: attaboy30 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124 of 136
Subject: Re: proxy Date: 12/21/2001 10:29 AM
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prime are you trying to tell me that my 4000$ investment in tcm that is now worth 5000$ of tyco is going to be considered a capital gain?and then how am i suppose to treat my new tyco stock? as a new purchase?,this can't be what you are telling me??
p.s. how did u vote? i would have had to vote against just to be a contrarian! :~}

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Author: prime13 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 125 of 136
Subject: Re: proxy Date: 12/21/2001 10:40 AM
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prime are you trying to tell me that my 4000$ investment in tcm that is now worth 5000$ of tyco is going to be considered a capital gain?and then how am i suppose to
treat my new tyco stock? as a new purchase?,this can't be what you are telling me??
p.s. how did u vote?


I didn't take the effort to vote knowing that my vote would be meaningless.

That's right you have a capital gain of $1000 with the sale date the day the consolidation took effect, I think that was 12/18. Your new shares of TYC have will have a purchase date of the same date. I am sorry about this bad tax news, fortunately I did not have this problem as I had small loss on my TCM holdings. All this is spelled out in the proxy materials they sent us last month.

prime13

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Author: pknoerr Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 126 of 136
Subject: Re: proxy Date: 12/21/2001 11:11 AM
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Yep that's the story.... I too will have to take gains on my TCM. But that's sort of the idea of investing... to make money. I pay taxes now or I pay them later. Fortunately I'm not going to be making as much off investments this year as during the several years prior, so it won't hurt much. The timing was OK for me.

PK

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Author: attaboy30 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 127 of 136
Subject: Re: proxy Date: 12/21/2001 11:35 AM
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prime,
Strangely i never recieved the proxy materials.Understandably i was quite surprised to see the other day that the deal was done!

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Author: attaboy30 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 128 of 136
Subject: Re: proxy Date: 12/21/2001 11:38 AM
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PK
Fortunately??? :~}

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Author: pknoerr Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 129 of 136
Subject: Re: proxy Date: 12/21/2001 5:20 PM
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attaboy,

That proxy came back in November I believe. I knew that the deal was to close in late December per the proxy. Unfortunately. those shareholder relations firms that mail proxy materials are not always very prompt about getting the mailings on the way.

I was really surprised that there wasn't any press release at all about it, except for the message after the proxy vote was announced stating that the merger close date was expected to be December 18, 2001.

Seems that TYC used to release press releases upon completion of mergers.

Good luck all and lets hope for a solid 60 before the new year.

PK



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Author: attaboy30 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 130 of 136
Subject: Re: proxy Date: 12/28/2001 9:29 AM
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PK,
Do you know what the price of tcm was on the closing date? Or for that matter tyco's closing price of same date?

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Author: pknoerr Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 131 of 136
Subject: Re: proxy Date: 12/28/2001 1:58 PM
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TCM last traded at 17.40. So I assume that was TCMs sell price. Since the trade ratio was .3133 shares of Tyco for each share of TCM, the price should have been approximately 55.54 for TYC. I did get a document last night from my broker that listed my buy price for TYC. But amazingly it did not list my selling price for TCM. I have it at home. I will check later this evening and I can post my buy price.

See ya later

PK

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Author: prime13 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 132 of 136
Subject: Re: proxy Date: 12/28/2001 2:09 PM
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I just checked my brokerage account and it seems that I sold the fractional shares of TYC on 12/19 for 56.79. Using this as the price for TYC at the conversion this would give a sell price of 17.79 for TCM. I hope we get some information from Tyco about the tax details of the purchase.

prime13

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Author: attaboy30 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 133 of 136
Subject: Re: proxy Date: 12/28/2001 3:16 PM
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PK,
I am writing from north of the border.I am beginning to wonder if tax laws here could be different enough from yours that i may not have to treat it as a buy and a sell? I say this for a couple reasons.On my online account activity page it simply showed as a trade of x# of tcm for x# of tyc,{showing no prices for either}.Also i have not even recieved a confirmation of sale or purchase via mail as i normally do with any sale or purchase i make .
Hmmm...I must investigate this further

See what you find for a sale price at home.
Chat soon

Attaboy

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Author: pknoerr Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 134 of 136
Subject: Re: proxy Date: 12/28/2001 6:35 PM
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Well I checked my confirmation. It too does not state the prices of either TCM or TYC on the actual trade. My fractional shares were sold on 12-18-01 for 55.85. It seems odd that Prime13's shares were sold on the 19th as the deal closed as of the close of business... but that's neither here nor there....

I can't actually calculate my costs either on the basis of the number of shares either. I guess I will wait to see on my December statment.

Sorry I can't help everyone any more than this,

PK


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Author: attaboy30 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 135 of 136
Subject: Re: proxy Date: 12/29/2001 2:34 AM
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This just gets stranger and stranger

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