When a company you own shares in is acquired or merged, several outcomes are possible:
- Cash-out: Your shares may be converted to cash at a predetermined price per share. In this case, your account will be automatically credited with a specified amount per share once the merger is completed and IBKR receives the proceeds.
- Stock exchange: Your shares may be exchanged for shares of the acquiring company.
- Combination: You might receive a combination of cash and new shares.
The specific details of the merger or acquisition will be reflected in your account's Activity Statement in the Corporate Actions section. This section typically includes:
- The date of the action
- The execution time
- The type of corporate action (e.g., merger, acquisition)
- The number of shares affected
- The cash value or exchange ratio per share
Note
- The process is usually automatic, and you do not need to take any action. However, always check your account statement for the most up-to-date information on corporate actions affecting your holdings. This will provide you with the exact details of how the merger or acquisition has impacted your shares and any resulting changes to your portfolio.