I own shares of JMP which is about to be acquired by Citizens Financial Group. The notification shareholders received states this:
Note that I will have the right to receive cash compensation. I assume this means I can opt not to receive it. If after the merger I receive shares of CFG, I'm OK with that. Or, I can opt for the $7.50 per share cash consideration.Upon completion of the merger, each common share of JMP will be converted into the right to receive cash consideration of $7.50
per common share.
My question is, if I opt for the cash consideration, would that be considered a taxable event and thus subject to tax? I suspect it would be. Needless to say I am loathe to pay any more tax than I have to. My basis in JMP is $6.79, so the $7.50 they're offering would represent a gain for me, thus my inference that it would be taxable.
Thank you.