The proposed regulations make it clear that, if an acquiring corporation acquires the target's stock for anything other than its own voting stock
, such consideration is treated as money or other property exchanged for the target's assets, and the transaction will not qualify as a C reorganization unless the Sec.
In addition, when the acquirer transfers cash or other property to the target, the previously owned stock will not be counted for purposes of determining whether at least 80% of the assets were acquired for voting stock
Under the old law, a foreign bank could acquire only up to 60 percent of the voting stock
of an existing bank.
Brokerage firm CFH Group announced on Friday that it has entered into an all-cash transaction agreement with Boston Technologies' co-founder and partner, Kevin Millien, to purchase 50% of voting stock
of Boston Technologies Inc, a provider of software, solutions, services and trading platforms to institutional and retail brokerage firms and Boston Prime Ltd, a Prime Brokerage.
Moreover, because a type C reorganization requires using at least 80% voting stock
as consideration (without regard to the boot relaxation rule), this transaction would not satisfy those requirements and thus could be taxable.
If company A uses A voting stock
to acquire all 50 shares of company T in a B reorganization, then company A's tax basis in the T stock will be $500, the aggregate of the shareholder's tax basis in the T stock.
The administration is urging Congress to increase the voting stock
from 25% to 49%.
The IRS contended that a premium should be applied to the class A voting shares and that "because of the disparate ratio (or skewed distribution) between the number of shares of voting stock
outstanding and the number of shares of nonvoting stock outstanding (1 to 1,848), the premium should be expressed as a percentage of(or in relation to) the equity value of [the company].
Many important tax consequences depend on whether a taxpayer or group of taxpayers owns stock representing 80% of the voting power of all classes of another corporation's voting stock
Unfortunately, paragraph 2 muddies the waters by suggesting' that a controlling financial interest is usually conferred by owning a majority of voting stock
without citing any other way that a controlling financial interest might be attained.
This purchase right generally cannot be exercised to purchase stock unless a person or group acquires beneficial ownership of 15% or more of IsoRay's voting stock
The measure, approved by both the House and Senate, will allow the Monetary Board to authorize more foreign banks to operate within the Philippine banking system by acquiring, purchasing, or owning up to 100 percent of voting stock
of an existing bank, or by investing in up to 100 percent of the voting stock
of a new banking subsidiary incorporated under Philippine laws.