Marshall and Ilsley Corp of Milwaukee WI (stock symbol MI) issued shares of Metavante Corp of Milwaukee WI (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 on the record date of 8/31/2007.
Using the "final closing price" method for relative market values on the first day of separate "regular-way" 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:
11/2/2007 Distribution Market Percentage Closing PriceRatioValueof Mkt Value Metavante Corp (MV) $25.10 x 1 = $25.10 20.52% Marshall and Ilsley (MI) $32.40 x 3 = 97.2079.48% Total $122.30 100.00%
The cost allocation percentages are based on these values:
Metavante: $25.10 divided by $122.30 = .2052 or 20.52% Marshall & Ilsley: $97.20 divided by $122.30 = .7948 or 79.48%
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
Information provided is intended solely for cash-basis U.S. citizen individual taxpayers and is believed to be accurate for most cases but is not guaranteed. Always consult your personal tax advisor about your own situation. Suggestions are most welcome. Please email our webmaster @ costbasis.com with your comments. If this website has been helpful to you, please consider making a donation to support our efforts.