|
REVERSE SPLIT - TICKER CHANGE - 4 SPINOFFS
Issue:
IAC/InterActiveCorp. issued four spinoff stocks on August 26,2008
Cause:
This is a transaction where IAC/InterActiveCorp. [IACID] spun off four companies, HSN, Inc. [HSNI], Ticketmaster [TKTM], Interval Leisure Group, Inc. [IILG], and Tree.com, Inc. [TREE] to its shareholders. On 8/26/08, each IAC shareholder received 0.2 shareS of HSNI, 0.2 shareS of TKTM, 0.2 shares of IILG, and 0.033333 shares of TREE for every share of IAC. This is a non-taxable reorganization. The original cost of IAC will be allocated between all five companies as of 8/26/08. You can get the details of the tax treatment of this transaction at http://phx.corporate-ir.net/phoenix.zhtml?c=111999&p=irol-faq.
After the above spinoffs, IAG effected a reverse 1 for 2 stock split, and changed its symbol to IACID.
Resolution:
The first step is to edit the profile for IAC/InterActiveCorp, changing the symbol to IACID.
Although the software form for spinoffs allows multiple companies to spun off, this transaction should be entered as four separate spinoffs. It is extremely important that the transactions be entered in the order indicated below.
Part 1 - HSN, Inc. [HSNI]
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 - 8/26/08
2. Parent company - IAC/InterActiveCorp. [IACID]
3. Remaining basis percentage of Parent Company, [IACID] - 86.0.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - HSN, Inc. [HSNI]
6. Number of shares of HSNI received - This will be the number of shares owned in IACID multiplied by 0.2 (make sure to include fractional shares).
7. Price per share of daughter company - $16.03.
8. Cash received in lieu of fractional shares - take from broker statement.
Part 2 - Ticketmaster [TKTM]
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 - 8/26/08
2. Parent company - IAC/InterActiveCorp. [IACID]
3. Remaining basis percentage of Parent Company, [IACID] - 70.9302.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Ticketmaster. [TKTM]
6. Number of shares of TKTM received - This will be the number of shares owned in IACID multiplied by 0.2 (make sure to include fractional shares).
7. Price per share of daughter company - $25.58.
8. Cash received in lieu of fractional shares - take from broker statement.
Part 3 - Interval Leisure Group [IILG]
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 - 8/26/08
2. Parent company - IAC/InterActiveCorp. [IACID]
3. Remaining basis percentage of Parent Company, [IACID] - 73.7705.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Interval Leisure Group [IILG]
6. Number of shares of IILG received - This will be the number of shares owned in IACID multiplied by 0.2 (make sure to include fractional shares).
7. Price per share of daughter company - $14.35.
8. Cash received in lieu of fractional shares - take from broker statement.
Part 4 - Tree.com, Inc. [TREE]
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 - 8/26/08
2. Parent company - IAC/InterActiveCorp. [IACID]
3. Remaining basis percentage of Parent Company, [IACID] - 97.7778.
4. Number of shares held in parent company - provided by software.
5. There is one daughter company - Tree.com, Inc. [TREE]
6. Number of shares of TREE received - This will be the number of shares owned in IACID multiplied by 0.033333 (make sure to include fractional shares).
7. Price per share of daughter company - $8.05.
8. Cash received in lieu of fractional shares - take from broker statement.
That will take care of the spinoffs. When you have finished, 14% of the original cost of IAC should have been allocated to HSNI, 25% to TKTM, 16% to IILG, and 1% to TREE. The cost basis of IACID should be 44% of the original amount.
All that remains is to record the reverse 1 for 2 stock split for IACID. For instructions on how to enter a stock split, see http://www.iclub.com/support/kb/default.asp?page=normal_split
|
