What will happen to the value of my shares? Is there a formula? Is it negotiated in the buy out?
2006-07-27 14:57:14 · 3 answers · asked by Darcy R 2 in Business & Finance ➔ Investing
It is negotiated in the buyout. Sometimes they offer a share swap where your shares become fewer shares in the acquiring company, sometimes they offer cash, sometimes a blend. Depending on the buyout terms, you may not have to do anything, simply keep your stock if the buyout company simply offers to buy a majority of the shares, usually at a premium.
The value of your holdings will generally increase, because the acquiring company usually has to offer enough of a premium to persuade the shareholders to sell out, unless the first company is already tanking. Shareholders get to vote on that, unless they have assigned that trust to another party, such as a broker.
2006-07-27 15:06:20 · answer #1 · answered by Anonymous · 6⤊ 0⤋
It is not very predictable, can go different ways based on what they want to do, totally out of your control ! No pattern. The ***** is when a stock goes off the board and has no value in one of these deals !
2006-07-27 22:03:44 · answer #2 · answered by The Advocate 4 · 0⤊ 0⤋
It is negotiated during the buyout.
2006-07-27 22:02:18 · answer #3 · answered by fireman_4_69 4 · 0⤊ 0⤋