[GNC] How to enter a corporate acquision?

Art Chimes artsonline at gmail.com
Mon Aug 19 19:48:17 EDT 2019


A few years ago I bought shares in a small bank ("LocalBank"). A
couple of years later, it was bought by a big bank ("MegaBank"). My
original shares in LocalBank were traded in for a smaller number of
shares in MegaBank, plus a few dollars cash in lieu of.

The closest I found in the documentation is the Stock Split tool,
which is supposed to also handle mergers but that latter function is
scarcely documented.

(The documentation shows you how to reduce the number of shares of the
original holding but not how to establish the position in the new
holding, at least as far as I understand. Entering a negative number
of shares for a "merger" seems to result in a "reverse split," when
the share price is increased as the number of share outstanding, or in
a given investor's portfolio, is decreased proportionally. I'm using
US terminology, and maybe in the Commonwealth or elsewhere the term
"merger" is correct.
https://www.gnucash.org/viewdoc.phtml?rev=3&lang=C&doc=help)

In any event, my use case is a corporate acquision more than a merger,
though I think the principle would be the same.

I could kluge something together, but I'd rather not reinvent the
wheel. And anyway, there must actually be a right way to handle this
sort of acquisition? These days on Wall Street it can't be a very
unusual occurrence.

Art


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