Crestwood-Inergy Merger Transaction
« on: November 24, 2013, 12:25:03 PM »
The Crestwood/Inergy merger transaction is not working correctly for me.  Essentially a name change from NRGY > CEQP and from NRGM > CMLP, IAM gets the NRGY > CEQP transaction perfectly, but does not merge all of the NRGM shares to CMLP. 

Earlier in the year, NRGY spun-off the NRGM shares, which I recorded as a spin-off in IAM with a cost basis of $0.00 (as the cost basis will not be determined until the K-1s are issued next spring, I thought to go back and edit the transaction then).  Could that be the issue?  IAM will only 'merge' into CMLP the NRGM shares which have a cost basis associated with them (those purchased through reinvesting dividends).  The bulk of the NRGM shares remain in my portfolio as NRGM, even though the transaction report indicates the total number of shares have been merged.

Any thoughts?

Re: Crestwood-Inergy Merger Transaction
« Reply #1 on: November 25, 2013, 10:39:57 AM »
Phil, you can't issue a spinoff with 0.00 cost basis assigned.  Shares received in a spinoff require an allocation of original basis. I suggest you undo all this activity, properly enter the spinoff, then use the merger feature.

Matt

Re: Crestwood-Inergy Merger Transaction
« Reply #2 on: December 01, 2013, 02:17:34 PM »
Hi Matt,

If I undo the spinoff and recreate with some arbitrary cost basis, is it just the spinoff transaction I will need to recreate, or will it be all transactions affecting the stock which have taken place since the spinoff occurred?  If the latter, I may just wait until next spring when I know the cost basis assigned to the spinoff, so I don't have to do this process twice.

Also, as an alternative, since the merger is 1:1 with no cash in lieu, can I just change the ticker symbols in the current and historical asset libraries? Wouldn't that be effectively the same thing?

Thanks for your feedback,

Philo

Re: Crestwood-Inergy Merger Transaction
« Reply #3 on: December 02, 2013, 10:22:45 AM »
You would need to undo all the subsequent activity since the spinoff, then the spinoff.

You could just merge all lots and basis into CMLP if that is the ending issue, and all original basis assigned to CMLP.

Matt