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SPINOFF: Peabody Energy (BTU) and Patriot Coal (PCX)
Issue:
On 10/31/2007 Peabody Energy Corp. [BTU] distributed 0.1 shares of Patriot Coal Corp. [PCX] for each share of BTU owned in a regular spinoff.
Cause:
This is a normal spinoff.
Resolution:
Enter the spinoff transaction in accordance with the instructions at
http://www.iclub.com/support/kb/default.asp?page=normal_spinoff.
Here's the information you need for the spinoff:
1. Spinoff date - 10/31/2007
2. Parent company - Peabody Energy Corp. [BTU]
3. Remaining basis percentage of Parent Company, [BTU] - 93.72.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Patriot Coal Corp. [PCX]
6. Number of shares of PCX received - This will be the number of shares owned in BTU multiplied
by 0.1 (make sure to include fractional shares).
7. Price per share of daughter company - $34.5.
8. Cash received in lieu of fractional shares - take from broker statement.
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