Lockheed Martin (LMT) Odd-Lot Exchange Offer (~$2800 Profit)

  • Company: Lockheed Martin Corporation
  • Ticker: LMT
  • Market Cap: $77bn
  • Size of Action: ~$3bn
  • Type of Transaction: "Split-Off" Exchange Offer & Reverse Morris Trust Transaction
  • Potential Gain (%): 11%
  • Expiration: August 16th
  • Tender Limit (Shares): 99
  • Max Investment ($): ~$25,000 per investment account
  • Max Gain ($): ~$2,800 per investment account
  • Sec Filing: Exchange Offer Site (Press Release & Exchange Info - Updated Daily), Filing
  • Summary: Lockheed Martin (NYSE: LMT) has agreed to separate and combine its Information Systems & Global Solutions (IS&GS) business segment with Leidos Holdings (NYSE: LDOS) in a tax-efficient "Reverse Morris Trust" transaction. In essense, Lockheed will spin off IS&GS as Abacus Innovations Corp. ("Splitco") which will then immediately merge with a subsidiary of Leidos Holdings. In an effort to encourage shareholders to exchange their shares, LMT is offering shareholders $111 in value of the Splitco for each $100 in value of LMT that shareholders exchange. This is subject to a exchange offer upper limit based on the 3-day VWAP on August 9, 10 and 11 so it is not yet final. 
  • Odd Lot Provision:  ...except for "odd lots" (lots held by owners of fewer than 100 shares), which we will purchase on a priority basis.....
  • All information contained on or available through this Web Site (“the Content”) is for general information purposes only and does not constitute any investment advice.
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