The aftermath of a corporate merger often includes unclaimed shares or cash, along with frustrated shareholders confused about the process and their actual holdings. In some instances, the post-merger integration process can be costly and highly aggravating. LINK Shareholder Services, LLC (LINK) can prevent the situation from escalating to this point by helping to ensure that a plan is in place to address merger-related issues. This includes complex account and estate transfer requirements, which can be overlooked in the flurry of merger activity.
Between 10 and 20 percent of shareholders’ securities holdings remain “unexchanged” months after an acquisition. There are many reasons for this, including:
- Change of address
- Non-receipt of shareholder correspondence
- Confusion about the exchange process
- Legal questions that need clarification
Whatever the reason, LINK works with companies to locate “unexchanged” shareholders and inform them of their options for successfully updating their accounts. To do this, we rely on our first-rate search capabilities, including access to multiple secure databases. Once an individual is located, we initiate contact and follow-up with subsequent outreach until the individual takes the required action.
We are persistent in our efforts. This is because both shareholders and issuers have a stake in share exchanges. For the shareholder, ensuring that accounts are up-to-date mitigates the risk of escheatment and helps ensure receipt of future communications, including dividends and other account information.
For stock issuers, locating and assisting unclaimed property helps avoid the costly and time-consuming escheatment process. Issuers also avoid costs associated with maintaining these idle accounts. And perhaps most importantly, proactively supporting your shareholders in this way sends a positive signal that they are a valued part of your organization
We designate a team of professionals to work closely with your company to help pinpoint your specific needs and to customize a post-merger integration plan. We reach out to shareholders with accurate information about what the merger will mean to their assets, and to enable highly efficient execution of all securities transactions. We offer our search service at no additional cost.
Our customized solution will help you achieve meaningful contact with shareholders in several ways which include:
- Identifying and assisting as many as 80 percent of “unexchanged” shareholders in exchanging or selling their shares, thereby reducing shareholder services costs.
- Identifying and minimizing risk regarding compliance with escheatment and abandoned property statutes.
- Providing shareholders with options to easily and voluntarily claim their assets, including comprehensive, understandable information about available options.
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