Details on the merger of Linde and Praxair?

Unknown
Unknown Member
edited February 2019 in Investing (Windows)
Looking for more details on the Praxair/Linde merger.  I know it is a 1:1 for Praxair shareholders.  What is the share price?

Comments

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited February 2019
    Here's what the announcement of the merger has to say:

    "As part of the business combination agreement, Praxair shareholders will receive one share of Linde plc for each Praxair share they hold. Linde  AG shareholders who accepted the exchange offer will receive 1.54 shares of Linde plc for each Linde AG share tendered. Fractional shares will  be aggregated and sold in accordance with the terms of the exchange  offer document and the business combination agreement. Shareholders with fractional shares will receive cash in an amount representing such  holder’s proportionate interest in the net proceeds from the sale."
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited October 2018
    I am not clear on exactly when this finalized.  I do now see Linde, PLC trading on the NYSE/NASDAQ under the symbol LIN.  That shows the only 'historical' information as Oct 31 data (today).

    In Quicken you would process this as a Corporate Acquisition with Linde, PLC acquiring Praxair (at 1:1 share ratio) or acquiring Linde, AG (at the 1.54:1 share ratio).  While the "price" for Linde, PLC is 'required' by the Quicken wizard, I do not believe it enters into any calculations.  As such, I believe you can use any price in the $164 range that it is trading at.  

    The wizard should end up entering for you a Remove Shares (for Linde AG or Praxair, as applicable) followed by a series of Add Shares for Linde, PLC -- one Add Shares transaction per lot of the prior company that you held.  

    Especially with respect the a Linde, AG holder who might be subject to getting fractional shares, after the wizard does its thing, you would sell any fractional shares generated for the cash-in-lieu amount you have received (or might recieve in the coming days).  
  • Unknown
    Unknown Member
    edited October 2018
    Thanks, I appreciate your response on this.  Having an exact share price will not be necessary...
  • I had Praxair stock. Getting my 1099B, I found out that this merger was taxable. It shows capital gains of the value of my new Linde on 10/31 minus my cost basis of my Praxair stock. My brokerage firm shows my new Linde cost basis equaling the value of my Linde stock as of 10/31. I entered the transactions in Q as sell of Praxair and buy of Linde which matches my capital gains for Praxair and new cost basis of Linde. Only thing is, my brokerage shows my lots of Linde with the same purchase dates for Praxair. Is there another way to enter this in Q to get same dates as my brokerage firm?
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    One way to get the holding period correctly stated is to remove the Buy, then do an Add for each lot, setting the "Date acquired" appropriately. 

    To get rid of the cash you could do a transfer of that cash "out", but using the same Account as the Account receiving the cash.
  • Thanks Tom. I did exactly as you said.  I did't know the trick of transferring cash out of an account back into itself would work like that. But indeed the cash from the sell was zapped.  My Quicken now matches my brokerage acct.
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