"Multi " mergers are those in which multiple securities are exchanged or where the buyer pays with a security other than its own stock. The most common taxable status types for multi mergers are carryover basis, fully taxable, or taxable to the extent of cash to boot.
Multi mergers present an accounting challenge for the average investor when the carryover cost basis must be allocated to all of the securities received in proportion to the relative market values.
Multi mergers which are taxable only to the extent of cash to boot must then have the remaining cost basis allocated to the securities received.
Click on the picture to access our Multi Merger Calculator for help. Recent mergers such as Virgin Media are in the calculator database.
These types of mergers are generally less common than they used to be except for biotech company mergers involving contingent value rights.
Multiple Security Merger Calculator
Some of the multi mergers that are in our database include: