Were Naugles, Inc. and Collins Foods International acquired by PepsiCo?
On March 18, 1991 Collins Foods International, Inc. was acquired by PepsiCo. Each share of Collins stock converted into .215952 shares of PepsiCo stock and one share of Sizzler (formerly New Collins) stock. The rate of the cash-in-lieu for fractional shares was $33.375. Naugles, Inc. was a predecessor company of Collins Foods International and was exchanged for PepsiCo stock. Collins Foods, Inc. was not part of this deal and didn’t convert into PepsiCo. The Collins acquisition was a tax-free deal so the formal shareholders of Collins International have a carryover tax basis in their PepsiCo and Sizzler (formerly New Collins) stock. While PepsiCo cannot give tax advice, we can mention the facts from which a tax basis can be calculated. The closing price of PepsiCo stock on March 15, 1992, the closing date, was $33.375 for a total value of $7.18 and Sizzler opened at $12.50. Based on these values, 36% of the basis would be allocated to the PepsiCo shares and 64% to Sizzler. All funds per
