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.....
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