Would he actually have done this one-sided DD because he feels he needs to? He is crazy, maybe so. Another answer to this why, anyone care to fill it in?...
Well that clears up the confusion. The problem is this. Section 368 of the Internal Revenue Code of 1986 deals with a resetting of stock prices as it pertains to tax liability not the resetting of the actual market itself. That's why companies constantly refer to this section of the Code when executing a merger so that neither side will suffer any tax consequences as a result of the stock swap.
You may or may not know this but the IRS deals almost exclusively on matters of taxation. The SEC deals almost exclusively with matters of stocks and markets. The IRS does not muck around in SEC matters telling people what they can and cannot do in the markets and the SEC doesn't muck around ruling on the tax consequences of securities based transactions. As a result, you must realize that it would be most inappropriate for the IRS to make rules affecting how the stock markets operate. Hope this clears up the confusion.
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