AT&T Corp Merger with SBC Communications. Cost Basis Changes.
Merger Completed 11/18/2005:
For every one share of AT&T Corp, the shareholders will receive 0.77942 shares of SBC Communications. As part of the SBC Communications merger, AT&T Corporation shareholders will receive a $1.30 special dividend.
That in itself is fairly straight forward. Here is where it gets strange:
On 11/18/05 AT&T's stock symbol, "T", goes away. SBC is renamed AT&T! The merged AT&T and SBC will trade using the stock symbol of SBC until 11/21/05. On 11/21/05, the SBC stock symbol goes away and SBC (now called AT&T) will trade using the old AT&T stock symbol of "T".
This merger complicates already complicated tax cost basis (or stock basis) computations for AT&T and its "offspring." The AT&T tax cost basis can most easily computed using the AT&T Divestiture Basis Tracker. You can order the Denver Tax Software, Inc. AT&T Divestiture Basis Tracker.
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