Attention, those of you who own BorgWarner Inc. (BWA): BWA has announced a spin-off of Phinia Inc. (PHIN). Owners of BWA will receive 20 shares of PHIN for every 100 shares of BWA that they owned as of the close of business on the date of record, July 3, 2023. Owners of BWA should receive the shares of PHIN to their brokerage accounts on or after July 7, 2023.
At this point, it appears likely that owners of BWA will see their positions called away at expiration on July 21st. If that is the case, no further action will need to be taken. You will simply update your accounts to reflect the calling away of BWA.
If BWA remains open following expiration, you should sell your shares of BWA and PHIN and transmogrify if necessary. After you have sold your shares of BWA and PHIN, you will want to combine the proceeds of the sales of both holdings and divide it by the number of shares you owned of BWA. This will provide you with the Cost of Old Stock that you will use in the transmogrification process.
Please note: if the Cost of Old Stock that you calculate from the sale of BWA and PHIN exceeds the average cost for BWA that you have in your records, there is no need to transmogrify the position.
We’re here to help! Here is a link to the Transmogrification document that will tell you step-by-step what to do.
Lattco PRO clients: Please 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 two orders to complete the
transmogrification process:
- Sell your existing BWA and PHIN shares
- Buy the same amount of shares for your new stock that you previously owned in BWA.
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.
