Re: Company Buyout

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Company Buyout
Date: Mon, 19 Apr 1999 18:37:33 -0400

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>stock about 10 years ago for less than $1,000, I am interested in all stock.
>I spoke to the investor relations spokeperson by phone. He said I could
>request all stock. If I am successful in getting all stock, I am assuming
>that I will defer tax until I sell the Dupont. Does anyone know if this is
>correct?

It depends on how the buyout is structured.  If it is considered a
"tax-free" buyout (most are), you are correct.  If it is not, you will
be considered to have sold the Pioneer shares at a price determined by
what the stock swap is worth and purchased the Dupont shares and will
thus have a taxable gain.  Ask investor relations of both companies.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 5.2

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