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Harley Meyer wrote:
>
> I am currious if I am calculating this correctly.
>
> Company A will buy all of Company B's shares for 25 million, 1/2 in cash
> and 1/2 in stock. Company B has 4.45 miilion shares.
>
> So that would mean that company B shareholders will receive $5.61/share.>
> So if the last sale on company B was $2 then the price should go up and
> if the last sale of company B was $10 then the price would drop.
> I am aware that there could be other deals based upon closing prices of
> both stocks, etc. But in general am I doing this correctly.
>
> Thank you,
> Harley
You are correct as I see it Harley. Of course, there is always the
arbitrager, who will attempt to make an 1/8th or more on the
transaction. The arbitrage would, as I see it, come from the perceived
value of company A's stock value and the likelyhood that the deal would
or would not come off.
Al Taglavore
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