Becton Dickinson completed its merger with CareFusion on 3/17/2015for cash and Becton Dickinson stock.
The SEC filing for this merger can be found at through the Becton Dickinson web site at: https://phx.corporate-ir.net/phoenix.zhtml?c=64106&p=irol-sec This is the S-4 filing of
This merger is a cash plus stock reorganization. For tax purposes this is treated as a sale of CareFusion for total proceeds equal to the cash and market value of the Bectin Dickinson shares you were eligible to receive. Some of these proceeds are then used to purchase Becton Dickinson. All the information below is from the information available from the S-4 filed with the SEC. The Bectin Dickinson price per share is from an FAQ on this merger on the Bectin Dickinson web site.
First, the sell Transaction
The total merger consideration is $60.0559 per CareFusion share. This is $49.00 in cash and $11.0559 in Becton Dickinson shares (142.29 x .0777). Calculate the total value received for your CareFusion shares by multiplying 60.0559 by the total shares of CareFusion owned.
Total Proceeds = [60.0559 x (# of CareFusion shares owned)] – (Reorganization fee).
For 100 shares this would be 100 x 60.0559 = 6005.59 – (Reorganization fee).
Use the Suspense account to receive the sale proceeds.
Date this transaction 3/16/2015.
Second, the transfer Transaction
Transfer from the Suspense account to the Broker account (or bank if appropriate), all merger proceeds cash received from this transaction. This will be $49.00 per CareFusion share.
For 100 shares of CareFusion this would be 49 x 100 = 4900. If a reorganization fee was charged decrease the cash transferred by the amount of the reorganization fee.
If your Suspense account balance was zero when you entered the sell transaction above, then the balance after transferring the cash received will be the total purchase price of the BectonDickinson shares you received in this merger.
Third, the buy Transaction
Enter a buy transaction for the all Bectin Dickinson shares you had the right to receive in this merger. This will be .0777 x (#of CareFusion shares owned). For 100 shares of CareFusion, this would be 7.77 shares (.0777 x 100). Be sure to include the fractional shares.
The total cost should be 11.0559 x (#of CareFusion shares owned). If you owned 100
CareFusion shares this would be 1105.59. This is based on the closing price of Bectin Dickinson on 3/16/2015 of 142.29. This is the price Bectin Dickinson lists in their FAQ on this transaction on their web site.
Date the transaction 3/17/2015. Save the buy transaction and the entries needed to complete this merger are done.
Fourth, the sale of Fractional shares
Enter a sell transaction of Bectin Dickinson for the fractional share.
Date this transaction 3/18/2015.
The total proceeds should be the cash-in-lieu amount stated on your broker statement.
If you owned 100 share of CareFusion the fractional shares of Bectin Dickinson sold would be .77 .