04/17/2019 – Rowan Companies plc (RDC)

  by Robert Brauer

Attention, those of you who own Rowan Companies plc (RDC):  RDC has completed a merger with Ensco plc (ESV). The merger includes a trade of 0.687 shares of ESV for every 1 share of RDC previously owned. Because of this agreement, you should sell your new shares of ESV on Trade Day, and Transmogrify if necessary. If you are able to sell your shares above your average cost, there is no need to Transmogrify.

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

Please Note: When calculating the Price of Old Stock for the transmogrification, you will take the proceeds you received for selling the new shares of ESV, and divide that figure by the number of shares of RDC that you owned prior to the merger. This should give you a price of old stock that is roughly between $8 and $14 in value.

Also Note: If you owned both ESV and RDC prior to this merger, please contact us prior to undertaking any action, as this will be the easiest way to complete the process.

Lattco PRO clientsPlease use this link to access the transmogrification document for your accounts. Also, please give us a call after you have purchased shares for your new position and before you sell your options; we will need to make some adjustments to your account to properly reflect the transmogrification.

Lattco AutoPilot clients:  At this time, trading screens for Transmogrification are not included in the AutoPilot system.  You will need to log into Ally to place three orders to complete the Transmogrification process:

  1. Sell your existing shares
  2. Buy the same amount of shares for your new stock
  3. Sell to Open a put at the top of the lower band to replace the purchase for the current month if you don’t own 10x your Level

Once this is complete please notify us and we will adjust your AutoPilot account so that it can suggest the appropriate call option orders.

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

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