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Celgene takeover by Bristol Myers

On November 21, Bristol Myers (BMY) took over Celgene (CELG). I own CELG in two accounts and after an One Step Update I updated the account which held the least number of shares by automatically accepting the Quicken figures. However, it did not delete all the Celgene stock, so I ended up with both Celgene and Bristol Meyers. Since this was incorrect I got rid of it and loaded a backup from the day before so unfortunately I no longer have the exact information from Quicken to pass on.
For my shares of CELG I received a cash payout, received rights to buy BMY at a certain price, and received the same number of shares of BMY as I originally had of CELG. How do I enter this and delete CELG so I do not lose any financial information?
Thank you. Caryl
Reply to
cpdreiblatt
If I understand correctly, you received: 1) A Return of Capital on CELG (cash payout) 2) Some BMY Options 3) One share of BMY for each share of CELG that you held
You may need 3 investment transactions: 1) Return of Capital 2) Grant Employee Stock Option (even though you're not an employee) 3) Corporate Acquisition (stock for stock)
Reply to
Bartt
Thank you for your help. I had no problem with adding numbers 1 and 3 but have questions about the Grant Employee Stock Option, number 2 above. On the screen it asks for the exercise price but that does not exist. I was given rights at 2.06 but there is no exercise price as investors are speculating that the BMY stock will soar should the pipeline from CELG be a success. The rights fluctuate daily as BMY does. Perhaps I should just add this as a stock as done on the brokerage statement?
Thanks again--I appreciate your advice.
Reply to
cpdreiblatt
Thank you for your response. I am sorry that I took so long to thank you but I found the information under the website above so confusing that I did nothing for a while. As I said earlier, I had already removed the old Celgene and added the new Bristol Myers stock and my problem was with Bristol Myers rights (BMYRT). Today I finally decided to just use "add" for this. It may not be the ?correct? way but hopefully it does what I want it to do. Now I have another problem: I voided some entries and now I would like to ?unvoid? them but I cannot figure out how to do this. Is it possible? Thanks again. Caryl
Reply to
cpdreiblatt
The easiest way to undo any change you've made to your Quicken data file is to restore a backup you saved prior to the change: select File
Otherwise, you will need to reenter the details of the transactions you voided.
Reply to
Sherlock
When I added my new Bristol Myers stock to Quicken using #3 above I made an error and put $6.85 instead of $56.85 in the price per share. I am now having a problem changing it. I have correted the figure on the transaction register but when I go to my holdings it still shows the old figure. How can I corret this?
Thanks. Caryl
Reply to
cpdreiblatt
I am still having a problem with the price per share of my new Bristol Mysers Squibb (BMY) stock. I deleted both the "removed" and "added" entries which were generated when I originally used the "corporate acquisioon" function for Celgene to BMY. I then generated a new Corporate Acquision using the correct fgure for the price per share (56.85). However, when I view the holdings it still shows up as 6.85. What am I doing wrong?
Thank you. Caryl
Reply to
cpdreiblatt
I am still having a problem with the price per share of my new Bristol Mysers Squibb (BMY) stock. I deleted both the "removed" and "added" entries which were generated when I originally used the "corporate acquisioon" function for Celgene to BMY. I then generated a new Corporate Acquision using the correct fgure for the price per share (56.85). However, when I view the holdings it still shows up as 6.85. What am I doing wrong? -------------------------------------------------
If I understand you correctly, you just need to modify your Quicken price history.
Depending on what the price history currently contains, you would need to either: modify the incorrect price (if you wish to keep the same date); or delete the incorrect price and possibly add a new price record.
See Investing > Investing Tools > Security Detail View. Select the security with the problem price in the dropdown. Click Update > Edit Price History.
Reply to
John Pollard
John,
Thanks for trying to help me, but it does not work or I am doing something wrong. On the "Security Detail View BMY" page the Transaction History has five Added entries on 11/21/2019,four lots from one account and one lot from an IRA account. Dividing the shares for each of these entries into the amount for each entry comes up with the right cost of $56.85.
The problem is with the Holdings section on that page where it has the correct number of shares held but an incorrect Cost Basis and therefore the Avg. Cost Per Share is 6.85 instead of 56.85.
I originally thought that I had entered the wrong cost when I first used the Corporate Acquisition form, but since I have deleted it and started over several times I think that I always had the correct figure there and the error is because of something else.
I forgot to mention in my earlier queries that I am using Quicken 2017 Deluxe.
Caryl
Reply to
cpdreiblatt
General comment: It is a bad idea to input cost/share. One should input number of shares and total $ and let Quicken calculate cost/share because it does not always come out to "even" cents but shares and $ received is fixed by the transaction.
Since this is a taxable transaction and not a return of capital I suggest waiting until "official" information is available from BMY in a stock holders report. Since it was in 2019 you can wait to enter until you want to file your income tax forms.
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Zaidy036
Reply to
Zaidy036
Just to simplify: 1. You sold CELG and received cash equal to the value of BMY, BMYRT, and the cash received. This results in a ST or LT Cap Gain depending on cost and holding time of CELG. 2. Using the value of the sale you bought BMY and BMYRT and deposited the cash.
What is the value of BMY and BMYRT received? Since one does not know the exact value IRS usually uses the average of the opening and closing prices for the day of the transaction. What ever value one decides to use will allow one to calculate the total received for the sale in #1 above.
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Zaidy036
Reply to
Zaidy036
Thanks for your comment. In this case I could not let Quicken figure out the cost per share because the Corporate Acquition form asked for the "price per share for acquiring company" so I indicated there that it was $56.85. This is the figure that Fidelity used. Or am I not understanding what you wrote?
Caryl
Reply to
cpdreiblatt
Zaidy,
Thanks for your help, but I am still confused. We received one share of BMY for each share of CELG at $56.85 per share. We also received the rights to buy it (BMYRT) at $2.25 per share and a return of capital payout was given because one share of BMY was approximately half the value of a share of CELG. All these figures are on the Fidelity website in two separate accounts, as mentioned earlier.
My original question is how to fix Quicken to show that the aquisition price per share of BMY is $56.85 and not $6.85. As I wrote earlier, the Security Detail View for BMY is correct for the Transaction history but in Holdings it indicates that the Average Cost Per Share is $6.85. We do not know where this lesser number came from.
Thanks again and Happy New Year to all who are trying to help me.
Caryl
Reply to
cpdreiblatt
You should look at
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I think using CorpAcq in Q will not work because you received 3 items, cash, BMY, and BMYRT, in the transaction and the cash was NOT used for the purchases.
Once you establish the total value received you can enter a sale of CELG and then the purchase of BMY and BMYRT.
I am not sure what the $56.85/share represents. BMY itself on 11/20/19 was about $64 so the purchase has to be more than $114 per share.
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Zaidy036
Reply to
Zaidy036
Thank you for the website.
I cannot find where BMY was that high. According to the website that I loooked at it fluctuated on November 21 between $56.46 and 57.46.
Caryl
Reply to
cpdreiblatt
You are correct. A quick glance overlooked that was the closing price on Dec 31. See
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Zaidy036
Reply to
Zaidy036

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