SPINOFF: Verizon Communications (VZ) and FairPoint (FRP)
Issue:
On 3/31/2008 Verizon Communications Inc. (VZ) distributed 0.018859207 shares of FairPoint Communications, Inc. (FRP) for each share of Verizon owned in a regular spinoff.
Cause:
This is a normal spinoff. Pertinent facts relating to this transaction can be found at: http://investor.verizon.com/shareowner/cost_basis_worksheet.aspx
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 - 3/31/2008
2. Parent company - Verizon Communications Inc. (VZ)
3. Remaining basis percentage of Parent Company, (VZ) - 99.5370.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - FairPoint Communications, Inc. (FRP)
6. Number of shares of FRP received - This will be the number of shares owned in (VZ) multiplied by 0.018859207 (make sure to include fractional shares).
7. Price per share of daughter company - $9.17.
8. Cash received in lieu of fractional shares - take from broker statement.
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