Marshall and Ilsley (stock symbol MI) issued shares of Metavante Corp (symbol MV) in a non-taxable spinoff on 11/2/2007. One (1) share of Metavante Corp was received for every three (3) shares of Marshall and Ilsley stock owned.
Using the "final closing price" method for relative market values on the first day of trading, the following allocation percentages should be applied to your original basis in Marshall and Ilsley shares to determine your new cost basis in both stocks:
Metavante Corp (MV) 20.52% Marshall and Ilsley (MI) 79.48% Total 100.00%
Your holding period for Metavante Corp shares will be the same as the acquisition date for your Marshall and Ilsley shares.
Use our handy spinoff calculator to compute your new cost basis and the gain or loss on any "cash in lieu" of fractional shares payment. Just click on the image of the spinner to the right and then select "Metavante" from the drop-down menu. Many fields will be pre-filled for you. Simply add your own cost basis information for Marshall and Ilsley.
Subsequent Development: Metavante (MV) announced an agreement to be purchased by Fidelity National Information Services Inc (FIS). The transaction is structured as a tax-free all-stock merger with 1.35 shares of FIS issued for each share of MV and is due to close before 9/30/2009. Your cost basis and holding period will carry over from your MV shares to your new FIS shares. Only the cash payment received in lieu of fractional shares will be taxable. Use our merger calculator to calculate your new cost per share and the gain or loss on the cash in lieu payment by clicking on the image to the right.
Stock Merger Calculator
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Information provided is intended solely for U.S. individual cash-basis taxpayers and is believed to be accurate for most cases. Always consult your personal tax advisor about your own situation. Suggestions are most welcome. Please e-mail webmaster @ costbasis.com or write to us at P O Box 11022, Chicago IL 60611 with your comments.