GE Shares - Synchrony Financial Swap.
Hello. Looking for some help on this please. Got the notice below for GE shares that we have (600). What should we do? What makes more sense?
BMO InvestorLine has been informed that General Electric all 705,270,833 shares of Synchrony Financial which are owned by GE Consumer Finance Inc a Subsidiary of General Electric Company for common shares of General Electric Company, subject to the terms and conditions of the date of this prospectus and the Letter of Transmittal.
Terms:
Option 1: Exchange Shares (Subject to Proration for Non Odd Lot holders)(See Important Notes)
To receive a number of shares of Synchrony Financial at a rate to be determined for each share of General Electric tendered.
Option 99: Do Nothing (Default) - Holders to retain security
Important Notes:
Exchange Rate
For each USD $100 of GE Common stock accepted in the exchange offer, holders will receive approximately USD $107.53 of Synchrony common stock, subject to an upper limit of 1.1308 shares of Synchrony common stock per share of GE common stock. The exchange offer does not provide for a lower limit or minimum exchange ratio. If the upper limit is in effect holders will receive less than USD 107.53 of Synchrony common stock for each USD $100 of GE common stock.
Odd-Lot Preference
Shareholders tendering 99 shares or less will be exempt from any prorated acceptance. To qualify for the odd lot preference a holder must beneficially own less than 100 shares and tender their entire position.
Proration
Proration for each tendering shareholder will be based on the number of shares of GE Common stock tendered by that shareholder in the exchange offer, and not on that shareholder's aggregate ownership of GE common stock. Any shares of GE common stock not accepted for exchange as a result of proration will be returned to tendering shareholders.
Distribution
If the offer is not fully subscribed, GE will conduct a distribution of its remaining shares of Synchrony common stock through a special dividend to all GE Shareholders, on a pro rate basis within 12 months of the closing of the exchange offer.
BMO InvestorLine requests that you direct inquiries pertaining to the offer (other than submission of instructions) to General Electric Company. Shareholders are advised to obtain independent advice and consult the offering circular regarding any possible tax consequences and for further details of the offer.
Please call BMO InvestorLine on 1-888-776-6886 and provide your instructions. Faxes and/or written instructions will not be accepted. Instructions must be received prior to November 13, 2015 9:00am Eastern Standard Time (EST). Any instructions received after this time will be sent on a best effort basis only. If no instructions are received, BMO InvestorLine will take no action.
BMO InvestorLine does not charge your account any commission for reorganizations or entitlements. Please allow 1-3 weeks after the expiry date for processing of Canadian issues and up to 90 days if US based. If you tender your shares to an offer, please ensure you do not place any sell orders on the position. This may result in a short position and financial losses that you may be responsible for. If you wish to place a sell order, please contact us first to ensure your original instructions can be cancelled.
For offers that include a cash payment, the payment will be deposited in the account in the same currency as the currency in which the position is held in the account, which may result in exposure to a foreign currency conversion. BMO Investorline will not be responsible for any losses incurred as a result of a foreign exchange conversion.
Regards,
BMO InvestorLine
The information in this letter is compiled from sources believed reliable. However, BMO InvestorLine does not ensure the accuracy, adequacy, timeliness, completeness, or fitness of the data and as such assumes no liability for any losses resulting in its use.