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Comment for TROX Stock Quote - Tronox Inc Stock News, Research
Posted by: heisenman (IP Logged)
Date: May 17, 2012 10:47AM
Tronox merger offer. Anyone that may own "TROX" shares have an opinion about accepting the "ordinary shares" that trade in Australia versus the "exchangeable" shares?
Stocks Discussed: TROX,
Re: Comment for TROX Stock Quote - Tronox Inc Stock News, Research
Posted by: [email protected] (IP Logged)
Date: May 23, 2012 12:43PM
Look in the prospectus on pages 269 - 275 (assuming you are a U.S. based shareholder) for a detailed explanation. My interpretation is that both are basically the same except for the timing of the taxable event. Option A (ordinary shares & $12.50 div/share) is taxable upon the event. Option B (exchangeable shares) is taxable when you exercise the exchange at some point in the future.
I own my shares in an IRA so I don't think Option B will buy me anything. If I owned them outside my IRA account and bought them within 12 months of the event, I might go with Option B to avoid short term gain taxation.
Stocks Discussed: TROX,
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