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MERGER: Exxon and XTO
Issue: How do I enter the Exxon merger with XTO Energy into my accounting software?
Cause: Exxon Mobil completed its merger with XTO Energy on 6/25/2010 for an exchange of Exxon Mobil stock.
The SEC filing for this merger can be found at through the Exxon Mobil web site at:
http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-sec
Choose the S-4 filing of 2/1/2010.
Resolution:
This merger is an all stock reorganization. This is entered as a simple merger in Club Accounting. All the information below is from the information available from the S-4 filed with the SEC.
The Merger
Go to the merger transaction entry screen of the version of the software being used. If you are unfamiliar with merger transactions you can get help at this url:
http://www.iclub.com/support/kb/default.asp?page=normal_merger
Here is the information you need to complete the merger.
Date: 6/25/2010
Old Security or Merging Company: XTO Energy
Price per share of old Security / XTO : 41.81 (or use the last valuation in your software)
Cash received: See your broker statement for cash-in-lieu
New Security: Exxon Mobil (XOM)
Shares received : .7098 x (#of XTO shares owned)
(Remember to include fractional shares.)
Save the transaction and you're done.
A worksheet is provided below to record the items that need to be calculated.
A. Total Exxon Mobile Shares received received.
.7098 x (# of XTO Energy shares) = ____________________________
B. Cash in-lieu received. Check your broker statement or web site. _________________
C. Price per share of Exxon, if not already provided by the broker = (Cash received for fractional shares) Divided By (Fractional Shares Received) _________________
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