Buba
21 May 2018
Re: Capital Gain Calculation? See here for the rules -[link]
numberbiter
21 May 2018
Re: Capital Gain Calculation? Capital Gain calculation on sale of GKN shares.This is, in my view, a debatable issue; your broker should be able to give you a definitive answer. My view is that if you willingly sold your GKN shares to Melrose, then on the day you receive your Melrose shares plus cash
1) Multiply the Melrose shares you were allotted by the offer price and add the cash you received (A).(2) Calculate the cost of the GKN shares you bought (and have now lost) including commission and stamp duty (B)Capital gain = A - B.In time you will realise that you could have made a greater capital gain by just selling the GKN shares on the open market. Mind you, the way you have done it will have minimised your capital gains liability because just before April 5 2019 you can sell your Melrose shares and offset the capital loss against the capital gain calculated above.
chartcont
09 May 2018
Capital Gain Calculation? How to calculate the Capital Gain on receipt of Melrose shares and cash?
sound money
06 May 2018
Re: Hedge funds shorting Melrose "Of course, the hedge funds have worked all this out and are working out their strategy as to how to make their millions. I don't expect much action until Melrose's post merger Balance Sheet is published. Within a week of this you can expect Melrose's share price to drop 20%."Well numberbiter this strategy at the moment involves not shorting Melrose. The shorts have reduced. One argument not thought through.As to the share price dropping we can all revisit that with you at the time. No doubt you will absent from here when it does not come to pass.After all your track record is not good is it?M
pike fisherman
26 Apr 2018
Re: Hedge funds shorting Melrose LewTotally agree.
lew mannheim
26 Apr 2018
Re: Hedge funds shorting Melrose I'm not sure I understand your comment that shareholders following Lord Hanson lost everything. Hanson demerged in 1996 into four separate companies: Imperial Group, Eastern Group, SCM and Hanson - the rump business of ARC, Hanson Brick and the residual holding in National Grid. Any shareholder who held all four on demerger did pretty well in years to come as the last three were taken over and despite the recent price fall Imperial has been a pretty sound investment over the years in terms of total return. I've still got mine.
numberbiter
25 Apr 2018
Re: Hedge funds shorting Melrose Sorry if I have upset you Pike; all I have done is report the facts. You should be able to work it out for yourself1) Before the bid, Melrose was heavily indebted.(2) When they pay GKN shareholders 81p per share, their debt will soar.(3) Then they have agreed to resolve GKN's pension deficit. More debt.(4) Finally, thanks to the Transfer of Undertakings Act, it will cost them to get rid of GKN's employees.I am very much looking forward to reading Melrose's consolidated Balance Sheet when the merger is fully complete. Of course, the hedge funds have worked all this out and are working out their strategy as to how to make their millions. I don't expect much action until Melrose's post merger Balance Sheet is published. Within a week of this you can expect Melrose's share price to drop 20%.I admire your unremitting faith in Melrose. Unfortunately even Melrose's directors cannot fight against financial reality. Like Lord Hanson, they will do very well for themselves. But remember, those shareholders following Lord Hanson eventually lost everything. History does repeat itself; you have been warned!
72_fastback
25 Apr 2018
Re: Hedge funds shorting Melrose Short interest in MRO has fallen from circa 12% when the merger arbitrage boys were doing their thing to 4.4% now.
pike fisherman
25 Apr 2018
Re: Hedge funds shorting Melrose NumberbiterI thought you had died and gone to hell. I suppose there is still hope.Really dodgy GKN board. Melrose will resurrect this ailing company.
RAConnell
25 Apr 2018
Re: Hedge funds shorting Melrose numberbiter,Maybe GKN was a great company but it no longer is. As is apparent from the shenanigans of its past management it is clear their only competence was fiddling the takeover to their advantage while increasing GK's debt to the detriment of current employees (as per Sharks post below). It requires MRO to sort out this shambles as the excoriating comment below indicates.Cheers, RACP.S. As I recall, Mike turner was in charge at BaE while that company was involved in bribe scandal. Hardly the quality of Chairman that GKN needs.
numberbiter
25 Apr 2018
Re: Hedge funds shorting Melrose What we have witnessed is probably the worst example of stock manipulation in the last decade. A highly indebted company with a very weak Balance Sheet bids for an iconic profitable company that was not doing as well as it should, but with a sound Balance Sheet. Any investor in their right mind would have rejected the bid, but it succeeded by a small majority only because hedge funds were buying up GKN's shares to support it.The hedge funds knew that once the deal was complete Melrose would be intolerably indebted to an extremely high level, so there was a fair chance of this company going bust, especially as they knew key customers such as Airbus could not trust a company whose ethos was a quick buck, rather than committing a proportion of revenue to research. So now the shorting begins; they will make several million pounds out of this.Those GKN shareholders who sold out have done very well for themselves, but those who accepted Melrose's offer will likely lose a substantial proportion of their investment. As a country we have lost a great company; employees, especially those in GKN's pension scheme will also lose out. The country will suffer economically just to allow fat cat hedge funds to cream it in. The problem is we have a weak government focused solely on Brexit, so they happily allow potential disasters such as this without even a moments thought.
Kingel
24 Apr 2018
ADVFN Melrose slipped as it said GKN's profit and cash generation were below market expectations in the first three months of the year prior to the completion of the takeover earlier this month.
iolat
24 Apr 2018
Hedge funds shorting Melrose Beginning to think the whole takeover was just a financial manipulation by hedge funds to make a quick profit, we witnessed this on a much larger scale ten years ago with the Banks.
pike fisherman
19 Apr 2018
Re: current offer It’s all in the Melrose RNSs.
samdauncey
18 Apr 2018
Re: current offer Has there been any indication of when the takeover is likely to complete? I mean when GKN shareholders will get their MRO shares and cash?
