Here's another board with discussion on the KMG tender offer: http://finance.groups.yahoo.com/grou...s2/message/380
And, here's a discussion board specifically for special situations like this: http://www.vinvesting.com/modules.ph...=viewforum&f=1
Nothing there on KNG I think, but one could always post.
I don't put a lot of effort into things like this, but have a little experience... Sheryl, if you haven't called your broker yet, you could call and ask for the Reorg department, or tell them you have a question about a reorg. Tell them thet one of your holdings KMG, is having a tender offer, and you want to know the procedure for, and fee for, tendering your shares.
I think a typical fee a discount broker might charge is about $25. $50 wouldn't surprise me. As th says, it is different than a normal trade to sell something.
If it were me, I'd tender all my 50 shares at $85, or maybe buy 49 more and then tender all shares at $85. But I'm something of a risk taker.
When reading the details of the tender offer, you would likely find that they can back out of it if they choose to. So, you probably don't want to buy 49 more shares unless you're willing to take the chance your shares won't be bought back from you.
If you tender your shares, and they are bought back, you could choose to buy back into KMG. The company will be smaller then (since it bought shares at higher than today's market price) so you might need to do some math to decide what a good price is. However, if you tender your 50 shares, get $85 for them, and rebuy afterwards, you might be a little ahead, even after fees.
If someone bought 99 shares at the current price of about 79.50, and the tender went as expected, they would make about $500 after fees (a little over 6%) in about a month, if my math and facts are right.