03/18/2013 – Leukadia National Corp. (LUK)

  by Shelley Seagler

Attention, those of you who own Leukadia National Corp. (LUK): LUK announced a spin-off of Crimson Wine Group (CWGL). Shareholders will receive one share of CWGL for every ten shares of LUK.  Due to the spin-off, you should sell your shares of LUK and CWGL and Transmogrify after March expiration.  If you can close LUK for a profit, then you can sell your shares of LUK and CWGL and open a new position.

For the “Price of Old Stock,” take the sell price of LUK and add 1/10th of the price of CWGL.  For example, if you sell LUK for $25 and CWGL for $9, then the Price of Old Stock would be $25.90 (25 + (9 X .1)).

We’re here to help! Here is a link to the Transmogrification document that will tell you step-by-step what to do.

LattcoPro clients: please sell the shares of LUK and CWGL and give us a call before you go through the process and we will make the adjustments for you, the adjustments on the Transmogrification document are not necessary.

If you have any questions, please don’t hesitate to contact us at 1-888-6-SNIDER or support@snideradvisors.com. We’ll be happy to walk you through the process.

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