DEMERGER: Cadbury Schweppes (CSG) (Spinoff and Merger)

Issue:

On 5/7/2008 Cadbury Schweppes Plc (CSG) entered into a demerger, whereby each share was converted to 0.48 shares of Dr Pepper Snapple Group, Inc (DPS) and 0.64 shares of Cadbury plc (CBY)

Cause:

After performing this demerger, Cadbury Schweppes Plc ceased to exist. Pertinent facts relating to this transaction can be found at:
http://www.cadbury.com/SiteCollectionDocuments/US%20Tax%20basis%20information%20Final.pdf

Resolution:

We will enter this transaction by first performing a spin-off of Dr Pepper Snapple Group, Inc (DPS) from Cadbury Schweppes Plc (CSG). Then, we will effect a merger of Cadbury Schweppes Plc (CSG) into Cadbury plc (CBY).

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 - 5/7/2008
2. Parent company - Cadbury Schweppes Plc (CSG)
3. Remaining basis percentage of Parent Company, (CSG) - 72.776%.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Dr Pepper Snapple Group, Inc (DPS)
6. Number of shares of DPS received - This will be the number of shares owned in CSG multiplied by 0.48 (make sure to include fractional shares).
7. Price per share of daughter company - $25.30.
8. Cash received in lieu of fractional shares - take from broker statement.

To complete the transaction, we will enter a merger where each share of Cadbury Schweppes Plc was exchanged for 0.64 shares of Cadbury Schweppes Plc.

To enter a the merger in Club Accounting, follow the directions found at http://www.iclub.com/support/kb/default.asp?page=normal_merger. We suggest that you print out the instructions and fill in the blanks from the information below. Here are the items you will need.
Transaction Date: 5/7/2008
Old Security: Cadbury Schweppes Plc
Merger Ratio: 0.64
New Security: Cadbury plc
New Security Ticker Symbol: CBY
Value per share of New Security on Transaction Date: 50.725

There was a final dividend for CSG paid in May of 0.855 per share, which will have to be entered. This amount may be combined with proceeds for fractional shares, and foreign tax withheld may have been netted against it. You will need to examine the brokerage statement carefully to separate the various components.