How Will The VOD/VZ News Be Reflected In CFD's

AdamTheAnalyst

Junior member
12 3
Hi There,

I am long VOD in CFD's, and aware that Vodafone are dishing out cash and Verizon shares to share holders, as well as performing a 6:11 stock consolidation.

How will this news be reflected in my CFD holding (I'm with Plus500), will I see any of the cash payout or Verizon shares?

Never held a CFD through something like this so am quite new to it.

Cheers

Adam
 
L

Liquid validity

0 0
But this isn't a dividend payment.

http://uk.reuters.com/business/markets/dividends
Ah, with you, I assumed when you mentioned cash payment, you meant dividend.
Record and ex date for VOD are 20/2/14 and 24/2/14 respectively.

You are talking about this:
http://www.bloomberg.com/news/2014-...-vodafone-s-value-by-half-to-100-billion.html
http://www.irishtimes.com/business/...t-details-of-payout-in-verizon-deal-1.1697080

That will still apply with CFD's.
Best to ring your broker and ask them
how they are handling it.
 
Last edited:

luckyhaa

Junior member
20 0
This mail i got from CMC

As you may be aware, Vodafone Group PLC is making a ‘return of value’ to its shareholders as part of the sale of its American subsidiary Verizon Wireless. When a company makes a large return of value to shareholders, the market value of the company usually falls by the amount paid. Vodafone will consolidate its ordinary share capital as part of the return of value to try to maintain broad comparability of the Company’s share price, as far as possible, before and after the return of value.

As a result of this Corporate Action, if you have a CFD or Spread bet Position on Vodafone after market close on Friday 21st February 2014, the following action will be taken in respect of your Position:

1. Cash adjustment
The return of value to shareholders of Vodafone Group PLC is made up of two elements, a return of:

(i) Shares in Verizon Communications
As a holder of a CFD or Spread bet Position in Vodafone with CMC Markets, you don’t have the same entitlements as a shareholder of Vodafone and so don’t have an entitlement to Verizon Communications shares.

To reflect this element of the return of value however we will implement a cash adjustment for clients to the value of GBP 0.72 per Unit CFD in Vodafone and in respect of Spread bet Positions GBP 72 per £/point Stake. Note that this amount is an estimate based on the current price of Verizon Communications shares; we will be using Verizon’s closing price on 21st February 2014 when calculating the actual cash adjustment implemented on your Account

(ii) Cash
In addition, we will implement a cash adjustment of GBP0.30 per Unit CFD in Vodafone and in respect of Spread bet Positions GBP 30 per £/point Stake on your Account.

The cash adjustment will be effected as a credit adjustment is respect of long Positions and as a debit adjustment in respect of short Positions.

2. Unit / Stake Consolidation
Vodafone will also complete a consolidation to bring the price back up to the levels seen before the sell-off. The terms of the consolidation are:

6 new shares in place of every 11 held as at market close on Friday 21st February 2014

To reflect this Corporate Action, we will reduce the number of Units you hold in Vodafone CFDs, or in respect of a Spread bet Account, your Stake, by a ratio of 11:6.

Stop Orders and Limit Orders will not be adjusted during this Corporate Action. The size of your CFD or Spread bet Positions in Vodafone after the Corporate Action will be roughly 54% of your Position size before the Corporate Action. You may therefore wish to increase your Position if you want to maintain the exposure you had on your Account to Vodafone prior to the Corporate Action.
If you have any questions in relation to this Corporate Action, please contact our Client Management Team on 020 3003 8588.

Please remember that any CFD or Spread bet you hold on Vodafone will not entitle you to any rights in relation to the underlying asset(s) of a Product, including but not limited to any rights to delivery, acquisition or ownership of those underlying assets.
Kind Regards,
 

AdamTheAnalyst

Junior member
12 3
This mail i got from CMC

As you may be aware, Vodafone Group PLC is making a ‘return of value’ to its shareholders as part of the sale of its American subsidiary Verizon Wireless. When a company makes a large return of value to shareholders, the market value of the company usually falls by the amount paid. Vodafone will consolidate its ordinary share capital as part of the return of value to try to maintain broad comparability of the Company’s share price, as far as possible, before and after the return of value.

As a result of this Corporate Action, if you have a CFD or Spread bet Position on Vodafone after market close on Friday 21st February 2014, the following action will be taken in respect of your Position:

1. Cash adjustment
The return of value to shareholders of Vodafone Group PLC is made up of two elements, a return of:

(i) Shares in Verizon Communications
As a holder of a CFD or Spread bet Position in Vodafone with CMC Markets, you don’t have the same entitlements as a shareholder of Vodafone and so don’t have an entitlement to Verizon Communications shares.

To reflect this element of the return of value however we will implement a cash adjustment for clients to the value of GBP 0.72 per Unit CFD in Vodafone and in respect of Spread bet Positions GBP 72 per £/point Stake. Note that this amount is an estimate based on the current price of Verizon Communications shares; we will be using Verizon’s closing price on 21st February 2014 when calculating the actual cash adjustment implemented on your Account

(ii) Cash
In addition, we will implement a cash adjustment of GBP0.30 per Unit CFD in Vodafone and in respect of Spread bet Positions GBP 30 per £/point Stake on your Account.

The cash adjustment will be effected as a credit adjustment is respect of long Positions and as a debit adjustment in respect of short Positions.

2. Unit / Stake Consolidation
Vodafone will also complete a consolidation to bring the price back up to the levels seen before the sell-off. The terms of the consolidation are:

6 new shares in place of every 11 held as at market close on Friday 21st February 2014

To reflect this Corporate Action, we will reduce the number of Units you hold in Vodafone CFDs, or in respect of a Spread bet Account, your Stake, by a ratio of 11:6.

Stop Orders and Limit Orders will not be adjusted during this Corporate Action. The size of your CFD or Spread bet Positions in Vodafone after the Corporate Action will be roughly 54% of your Position size before the Corporate Action. You may therefore wish to increase your Position if you want to maintain the exposure you had on your Account to Vodafone prior to the Corporate Action.
If you have any questions in relation to this Corporate Action, please contact our Client Management Team on 020 3003 8588.

Please remember that any CFD or Spread bet you hold on Vodafone will not entitle you to any rights in relation to the underlying asset(s) of a Product, including but not limited to any rights to delivery, acquisition or ownership of those underlying assets.
Kind Regards,

That's perfect, thanks :)

Adam
 
 
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