Avago (AVGO) and Broadcom (BRCM) merger into Broadcom, Limited
Avago and Broadcom completed their merger into Broadcom, Limited on 2/1/2016. The details are different for the shareholders of each participant.
The SEC filing for this merger (DEFM14A filing of 9/28/2015) was found in the Investor Relations area of the Broadcom, Limited web site.
This merger is a cash-plus-stock reorganization for Broadcom shareholders who chose the all cash option. This option was oversubscribed and as a result these shareholders received cash and shares of Broadcom, Limited. For Broadcom shareholders who chose the all-shares option this is a simple merger. All the information below is from the information available from the DEFM14A filed with the SEC.
WARNING: The tax implications in these instructions are based on the SEC filing. In this filing Broadcom states that the tax consequences are based on this merger being treated as a reorganization as defined in the tax code. It is possible the IRS may dispute this treatment and this merger may be a taxable event. It is possible these accounting transactions may need to be deleted and re-entered differently to reflect the changed status of the merger.
Instructions for Myiclub Users
If you chose the “all-cash” option use the Merger with cash transaction.
Be sure to select the option “Transaction is taxable to a maximum of the cash received.”
Step 1
- Date: 2/1/2016
- Company: Broadcom (BRCM)
Step 2
- Cash per share received: 51.4829
- Exchange ratio of new to old shares: .0242
- Price per share of new shares on merger date: 133.34 (Opening price. Chosen to reduce gain from merger)
- Reorganization Fee: Enter amount from broker statement, if charged. This can also be entered as an investment expense. Entering here is more advantageous to club.)
- Symbol of new company: AVGO
- Cash received $: Enter cash-in-lieu amount from statement.
If you chose the “all-share” option use the Merger transaction.
Step 1
- Date: 2/1/2016
- Company: Broadcom (BRCM)
Step 2
- Symbol of new company: AVGO
- Shares Received: .4378 x (# of BRCM shares owned) Include fractional shares.
- Price per share: 133.34 (Opening price on 2/1/16)
- Cash received $: Enter cash-in-lieu amount from statement