SJM - The J.M. Smucker Company NYSE Stock
They are going to have a $5/share special divy related to the Folgers deal with P&G. I'm a bit confused on the shares thing: " current P&G shareholders will receive approximately 53.5 percent of Smucker shares". How the hell does that work? I'm a long time PG stock holder, they make it sound like I'll get some "free" SJM shares in my account. No matter, I bought SJM this morning to have both sides of the play and I want some of the $5/share dividend action. So far I'm up 2.3% of SJM and I'm guessinig it's going higher because of the added earnings they project from Folgers.
SJM on Google Finance
The only details out so far:
Under the terms of the agreement, which has been approved by the boards of directors of both companies, P&G will distribute Folgers to P&G shareholders in a tax-free transaction, with a simultaneous merger with Smucker. P&G expects the Folgers separation to occur via a split-off and plans to finalize the transaction structure in the early fall of 2008. In the merger, current P&G shareholders will receive approximately 53.5 percent of Smucker shares and current Smucker shareholders will own approximately 46.5 percent of the combined company upon closing. Upon closing, Smucker will have approximately 118 million shares outstanding. As part of the transaction, Smucker will be assuming an estimated $350 million of Folgers debt. The transaction is expected to be tax-free to both companies and P&G shareholders. In addition, Smucker shareholders as of the record date, prior to the merger, will receive a special dividend of $5 per share. The record date for the special dividend will be determined by Smucker at a future date.
Current Price: $53.75
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Last edited by BadThad; 06-04-2008 at 10:52 AM.