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SPINOFF: Altria Group (MO) and Philip Morris International (PM)
Issue:
On 3/28/08, after the close of business, Altria Group Inc. [MO] distributed 1 share of Philip Morris International Inc. [PM] for each share of MO owned in a regular spinoff.
Cause:
This is a normal spinoff. Pertinent facts relating to this transaction can be found at
http://www.altria.com/download/pdf/TaxBasisInformationStatement.pdf
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 - 3/31/08 - Note that since the distribution took place after the close of business on 3/28/08, you should use the next trading day.
2. Parent company - Altria Group Inc. [MO]
3. Remaining basis percentage of Parent Company, [MO] - 30.5.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Philip Morris International Inc. [PM]
6. Number of shares of PM received - This will be the number of shares owned in MO multiplied by 1 (make sure to include fractional shares).
7. Price per share of daughter company - $50.58.
8. Cash received in lieu of fractional shares - take from broker statement.
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