Originally Posted by thewolfman
Hi Aubrey, I also am holding shares of AAMRQ which got de-listed today. I was told by my eTrade rep the conversion would be .06 shares of AAL stock per AAMRQ share I had for the merger, so essentially like 15 shares of AAMRQ converts to 1 and he basically said I lost most the money I had gained through the merger. Any ideas if this statement is true or false?
I saw the same thing, and I just about had a heart attack. I spent a good 4 hours today researching what this meant, and it's pretty confusing, but I think I have an understanding of it (if anyone wants to chime in, please do!)
The .0665 per share is correct, but it is pretty misleading. This is my understanding on the subject:
American Airlines group will convert our AAMRQ stock to AAL in 5 different distribution periods, which will occur in 30 day increments for 120 days.
- The 1st distribution was the one issued today: In this distribution we are receiving .0665 shares of AAL for every one of AAMRQ stock.
- The 2nd distribution will be on January 8th
- The 3rd distribution will be on February 7th
- The 4th distribution will be on March 9th
- The 5th distribution will be on April 8th
For the 2nd, 3rd, 4th, and 5th distribution periods, the amount of money in the form of AAL shares that we receive will depend on the performance and the average stock price of AAL for that month. .0665 is what we are guaranteed, everything else is based on performance, and as far as I know, the next 4 distributions should be larger than this first one, and the last distribution should be the largest, that is of course if the stock doesn't tank.
From what I have read, it is impossible to predict exactly how much money we will end up with at the end of this 120 day period, but if AAL performs well, we could end up making a good amount of money at the end of this 120 days.
Here is a Q & A about the equity distribution, this helped clear some things up for me:
Hope this helps! Again, if anyone has something to add, please chime in!