According to the merger terms, 1 share of LVGO = 0.592 share of TDOC + $11.33 cash. The cash payment is split into two, $4.24 on conversion date, followed by $7.09 after the merger completion. If you have 100 share LVOG, you should have 59.2 share of TDOC + $424 cash on the day of conversion, followed by a payment of $709 at a later date.
I use TD Ameritade. I just checked my account and saw my shares were converted. However, I also noted the following:
A reorganization fee of $38 was charged on each account, regardless of how many shares the account holds.
The fractional share was dropped (so, you have 59 share of TDOC instead of 59.2). I understand they could not give you fractional TDOC share. But I am expecting the fractional share being converted to cash.
Thanks for the heads up Klay. Same thing here in my TD account, i will wait a couple of days to see if the fractional shares $$$ equivalent shows up and otherwise contact them.
Question though! It’s my first merger and I’m trying to understand what this means in terms of allocation and cost-basis for my new TDOC shares.
Considering LVGO last price of $ 139.77 and deducting $ 11.33 = $ 128.44. This $ 128.44 bought me .58 TDOC (I’m using .58 instead of .592 beacause thats the porportion of shares i’ve received)
Excluding the fractional shares, for the sake of simplicity, i “payed” each TDOC $ 217.29.
So I’m about 9% down at today’s prices. I understand that this is just a temporary price and result, but I wanted to check if it’s right to assume that cost basis for the sake of keeping records tidy at least.
“reorganization fee of $38 was charged on each account,”
This is another junk fee that is unique to TD Ameritrade. They have done that to me and to some small accounts i manage for my posterity. Schwab doesn’t do this nickel and diming crap and neither does Merrill Edge. TD also charges for trades over the counter while Schwab doesn’t. I was prepared to dump TD altogether until the merger was announced. But still, TD hasn’t lost its inclination to chisel clients. They also charge for trades over the counter. None of the other brokers do that.
Good news is this: Call them and complain about the $38 dollar fee. Who ever answers the phone is authorized to remove the charge. I assume they usually get away with it but capitulate to any complaint.
This propensity to cheat their clients is one reasons i never considered buying AMTD. Very dishonorable IMO.
My Livongo shares were held at Merrill Edge. I received a cash distribution of $7.09 per share in my account on Monday (although the record date is 11/4). This morning, I received my Teledoc shares, but I still have not received the $4.24 per share payment. Merrill Edge did not impose any reorganization fees or other charges, which I appreciate.
I have a Vanguard account and finally today my LVGO shares were converted to TDOC shares but I have yet to receive the cash distribution. Hopefully in a couple of days I’ll receive it. The problem I have is that I also have a call option contract for LVGO @ 55 that expires in June 2022. I should have closed out the contract before the completion of the merger but I was caught up with work and totally forgot. The call contract was initially converted to a non-standard contract CALL LIVONGO=59TDOC+CSH $55 EXP 06/17/2022. I wanted to close out that contract but there were no interests which showed zero value. I thought about exercising the contract (not ideal) to receive the proceeds but unfortunately today the call contract is no longer in my account. I will need to talk to a Vanguard representative but this sucks.
I thought about exercising the contract (not ideal) to receive the proceeds but unfortunately today the call contract is no longer in my account. I will need to talk to a Vanguard representative but this sucks.
It should be in the account under the new “TDC1 xxxxx” symbol. Look up the TDOC option chain.
I got the whole shares, the cash distribution less the foreign dividend withholding tax, but missing the cash for the fractional shares (0.4) and no TD Ameritrade’s style charges.
I checked my account and even called Ameritrade as I was not seeing the reorg fee ($38). They did not seem to charge me for whatever reason. May be you should call them and get it reversed.
Just got around to cleaning up my spreadsheets on this. With Schwab no fee and any non-converted fractional shares produced Cash in Lieu at a rate of $208.05 per share.