The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Argyle on December 05, 2015, 02:32:03 PM
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I inherited some stock in Lucent-Alcatel. The company is now being taken over/acquired/bought by Nokia. Okay, I think I've understood that part.
But they've sent a big prospectus "recommending" that I exchange all my Lucent-Alcatel shares for Nokia shares. This is the part I don't understand. I would have expected that the shares I own would just acquire a new company name.
Why do I have to choose to exchange them for Nokia shares?
And what happens if I don't exchange them? I then continue to have Lucent-Alcatel shares, which — what?
Can anyone shed light on this?
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It's impossible to say without the prospectus in front of me, but it's possible that if you don't swap they'll just buy the shares for cash.
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See https://www.bogleheads.org/forum/viewtopic.php?f=1&t=178056.
The very last line seems reasonable: "Take your loss, sell your [ALU] stock, buy more index funds, and never look behind. At least, you will save on some taxes to come."