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A family member owns common stock of Metlife, Inc. She received a substantial amount of paperwork that she asked me to look at since I have a similar (I use that term loosely!) background. It appears that Metlife is offering to exchange shares of Class B Common Stock of Reinsurance Group of America, Inc. for her shares of Metlife. These were either drafted by a stockbroker or a lawyer, cause those are the two that would benefit from writing like this - you have to hire one or the other to understand them!
1. Are they just interested in buying back their shares? I have studied reorgs and many different tax scenarios when I specialized in tax law in school, but I can't see what this is from the documents.
2. If they are just simply exchanging, should she do it? She said to me; "I don't want to lose these shares necessarily because it's insurance that I couldn't get now (she's elderly)." I am admittedly clueless as to investing, but how would these shares equate to an actual policy?
3. What happens if you opt not to exchange, or you don't take the time to read and understand the material and don't act on it?
4. Anywhere I could go that would help me out with this exact offer to exchange, or even just an offer to exchange in general?
Thanks in advance for your help.
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