I need to trace the value of a share of stock in Brooktree Corp (BTRE)
through subsequent acquisitions.  Here's the data I need:
1.  What was the stock price of BTRE in April 1996 (April 21 1996 if
possible).

2.  BTRE was purchased by ROK in Sept 1996 for $15/share.  Assume you
re-invested that $15 immediately into ROK stock.  How much would that
ROK stock be worth in April 1998?

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Request for Question Clarification by omnivorous-ga on 15 May 2003 07:24 PDT

TRL --

I'll have an answer shortly for you on BTRE and ROK.  But the question
title asks about CNXT -- and I don't see any question about its price.

Best regards,

Omnivorous-GA

TRL --

The first trading day after April 21 (a Sunday) was Monday, April 22,
1996.  Brooktree closed at $8.125 that day, down 1/8 from the Friday
close.  Brooktree had traded in the range of $7.75 to $21.75 in the
previous 12 months.

Rockwell acquired the company on September 25, 1996 for $275 million,
according to Rockwell’s release on the Business Wire.  On that date
Rockwell closed at $56.125 (up ¼), so the $15 would be 0.2673 Rockwell
shares.

On April 1, 1998 Rockwell closed at $57 per share, increasing the
original value of ROCKWELL stock by 1.6% and making the $15 invested
worth $15.23.

Thus far it’s been simple.  Even the Conexant part is simple – to the
end of 1998.  The Conexant spin-off occurred on the last day of 1998,
with Rockwell shareholders getting 1 share of Conexant for every 2
shares of Rockwell held.  Explanations of the Conexant spin-off and
tax basis can be found here:
Rockwell Investor Relations
"Shareholders Letter" (January 6, 1999)
http://www.rockwellautomation.com/invrelations/pdfs/TaxBasis.pdf


THE 1996/1997 SPINOFFS
======================

Two spinoffs during 1996-97 provide additional value to the Rockwell
stock received.  The true value depends on whether cash or stock was
received, but for ease I’ll convert everything to an equivalent stock
value.  For tax and calculation purposes you may wish to refer to the
Rockwell shareholder letter referenced above.  Because of partial
shares being issued in transactions such as these, shareholders also
had cash options that they could have taken.

DEC. 6, 1996
-------------

Rockwell divested its aerospace and defense business in late 1996,
giving shareholders 1 share of "new" Rockwell International stock for
their existing shares PLUS 0.042 shares of Boeing Company stock, worth
$94.31 per share.  Thus, the former Brooktree shareholders would have
received
$1.06 in cash value for 0.0112 shares in this transaction.

Boeing was valued at $94.31 by Rockwell at the date of the
transaction.

If shares (instead of cash) were received it will be helpful to know
that on April 1, 1998, Boeing closed at $52.75 per share.


SEPT. 30, 1997
---------------

On Sept. 30, 1997 Rockwell distributed 1 share of its Meritor
Automotive business for every 3 shares of Rockwell owned.  You can
find the details in the shareholder letter referenced above.

Thus, you’d have received an additional 0.0891 shares in Meritor
spin-off worth.  Meritor’s market value April 1, 1998 was $26.375, so
you’d have an additional $2.35.



Google search strategy:
Rockwell + acquisition + Brooktree

I also used the New York Times (via Proquest Historical newspapers, a
database available at many public libraries) to establish stock prices
for 1996 and 1998.

Best regards,

Omnivorous-GA

Amazing quality and depth of answer.  Went far beyond the minimum
asked for.  Thanks!