What will happen to my stock if a company is acquired by a foreign firm? More info below.?

Question

"Murray Hill, N.J.-based Lucent, which has agreed to be acquired by the giant French equipment maker Alcatel SA in a $13.45 billion stock swap" http://biz.yahoo.com/ap/060710/lucent_outlook.html?.v=7

If I have stock in this company, what will happen to it when the acquisition occurs?

OK! Two answers, each different. So, to a vote it is.

Answer 1

You will change out your x number of shares of LU for the new company. I can't find the details of the merger, but what will most likely happen to you is the dollar value of account will be the same, you'll just now own a different share amount of Alcatel (ticker ALA) or whatever new company they call it after the merger.

Answer 2

Noramally a set price is paid for each share from the company taking over. I couldn't find the specifics on this deal. They will normally say we will pay $x.xx per share and it usally is above the fair market value per share. This is described as a stock swap and I can't tell if they are merging into one company or being bought out. As a shareholder you are entitled to the details of this merger directly from Lucent, you should email them.

Answer 3

first of all, i did no longer additionally be conscious of there replaced right into a Botswana inventory substitute. i think of perhaps i can get interior a pair thousand miles of finding Botswana on a map so if there is a few thing unique or distinctive approximately Botswana i don't be conscious of it. besides the undeniable fact that, usually components is offered with debt. That adjustments the characteristics of the inventory via changing the capital shape of the business enterprise. extra, the business enterprise loses liquidity as a results of fact possibly they had to place money all the way down to purchase the valuables. those are 2 fairly huge negatives. on the helpful component they obtained components that could desire to convey approximately destiny earnings. That adjustments the money flows to fairness holders interior the destiny. All in all which skill the business enterprise only have been given much less liquid, riskier, yet in all probability greater worthwhile. that is as much as the industry to weigh those issues and notice how the way it comes out.