Lots of things happen. Companies grow or slow. Companies come and go. And sometimes companies get acquired.
Getting Acquired
As shareholders, we usually have no choice in the matter. If we were major shareholders, then maybe we would have a say, but normal shareholders like you and I are like the tail wagged by the dog when in comes to the results of a company being acquired.
Case
I have own a few shares of a particular company. Out of the blue, I get paperwork saying the company has been acquired. This has happened to various companies over time, so usually this is not a cause for concern.
However, in this case, the company doing the acquiring is located in Ireland. This brings up several challenges.
Firstly, Ireland levies a Combined Irish Dividend Withholding Tax (DWT) of 25%, unless shareholders are entitled to an exemption and submits a DWT exemption form. I need to find out if I am “entitled.”
Secondly, US backup withholding tax (US WHT) of 24% unless W-9 is filed. I already have this in effect, so I am not subject to US WHT.
Thirdly, the transfer agent is not authorized to sell shares on my behalf for this stock. To sell, I need to transfer to a broker.
Fourthly, transfer of shares requires payment of Irish stamp duty, unless transaction is below 1,000 Euros. Fortunately, my holding is small, and less that 1,000 Euros.
For various reasons, I am not interested in holding shares in this company.
So I have submitted the request to my broker to transfer these shares from the transfer agent to the broker. Once at the broker, I will be selling those shares. However this transfer request is still in motion, and I was notified that this could take more than two weeks. This is very unusual, as transfers to this broker usually take only a few days.
Outcome
As yet, unfinished. Additional stumbling blocks could later arise.
This is Part 1 of this saga. Part 2 is here.
Have you encountered unexpected and disharmonious events with shares? Let me know here.
The photograph of a Jumping spider (phidippus audax, Hentz) is from “Book of Monsters,” 1914. Courtesy Biodiversity Library of teh Smithsonian Institution.
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