Verizon to Spin Off a Company that will Merge with FairPoint. Cost Basis Changes.
FairPoint stock could be worthless. Get more information about a possible worthless stock loss deduction for FairPoint Communications.
Announced 1/16/07:
On 1/16/07 Verizon will form a company that will merge with FairPoint. Since Verizon is part of the AT&T "family", FairPoint will become part of the AT&T "family" after the merger.
This spin off and merger will require regulatory approvals. Thus, it is not yet known when these transactions will be complete.
The distribution ratio has not been announced.
If you owned AT&T before the January 1, 1984 AT&T divestiture, you might now own Verizon and you will be a shareholder in FairPoint after the spin off and merger. Figuring your Verizon and FairPoint tax basis could be very time consuming. However, if you have the AT&T Divestiture Basis Tracker, this computation is done automatically. This program will help those with FairPoint shares acquired through Verizon. (The program will not be needed if you acquired FairPoint before the Verizon spin off merger.)
FairPoint Spinoff Announced 12/13/07:
An agreement has been reached with the Main Public Utility Commission
News December, 2007:
Based on news accounts late in December, this spin-off has it a snag. The Verizon Fairpoint merger is not dead, but needs to be reworked to satisfy the Vermont Public Service Board.
Cost Basis Calculation:
The AT&T tax cost basis (or stock basis) can most easily computed using the AT&T Divestiture Basis Tracker. You can order the Denver Tax Software, Inc. AT&T Divestiture Basis Tracker.
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See the FairPoint Spinoff announcement.
See the Verizon status report on December 13, 2007.
See Verizon March 28, 2008 News Release
See FairPoint March 31, 2008 News Release
Get more information about the AT&T Divestiture Basis Tracker.