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  • FIRST POST
    • Agentwalker
    • By Agentwalker 30th Nov 17, 9:26 PM
    • 5Posts
    • 1Thanks
    Agentwalker
    Shares after takeover
    • #1
    • 30th Nov 17, 9:26 PM
    Shares after takeover 30th Nov 17 at 9:26 PM
    Just a general question about share prices after a takeover.

    Background

    Just to protect the company etc.

    We have company A, which is a listed company, it's received an offer to buy all shares at a specific value and this offer has been accepted pending a shareholder vote.

    Since the announcement the share price has jumped and its currently trading well above the takeover offer.

    Question
    How come the price is above the takeover offer?
    Why would anyone buy at this price knowing if the takeover happens their only getting a lower offer?
Page 1
    • HappyHarry
    • By HappyHarry 30th Nov 17, 10:10 PM
    • 456 Posts
    • 711 Thanks
    HappyHarry
    • #2
    • 30th Nov 17, 10:10 PM
    • #2
    • 30th Nov 17, 10:10 PM
    Maybe the shareholders are expecting to vote no to the takeover, in the hope of being offered a higher price?
    Last edited by HappyHarry; 30-11-2017 at 10:11 PM. Reason: Typo
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • alanq
    • By alanq 30th Nov 17, 10:37 PM
    • 3,882 Posts
    • 2,496 Thanks
    alanq
    • #3
    • 30th Nov 17, 10:37 PM
    • #3
    • 30th Nov 17, 10:37 PM
    Hopes of a rival bidder?
    I'm a Board Guide on the Budgeting and Bank Accounts, Savings & Investments, Food Shopping and Over 50s MoneySaving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert .com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    • Thrugelmir
    • By Thrugelmir 30th Nov 17, 10:46 PM
    • 56,183 Posts
    • 49,567 Thanks
    Thrugelmir
    • #4
    • 30th Nov 17, 10:46 PM
    • #4
    • 30th Nov 17, 10:46 PM
    We have company A, which is a listed company, it's received an offer to buy all shares at a specific value and this offer has been accepted pending a shareholder vote.
    Originally posted by Agentwalker
    The predator has not gained sufficient acceptances from major (institutional) shareholders at the offer price to gain control. They'll be unofficial sounding taking place behind the scenes.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Agentwalker
    • By Agentwalker 30th Nov 17, 10:53 PM
    • 5 Posts
    • 1 Thanks
    Agentwalker
    • #5
    • 30th Nov 17, 10:53 PM
    • #5
    • 30th Nov 17, 10:53 PM
    Cheers guys. Just thought it was a bit strange to risk paying quite a bit more than the buyout offer when on the surface it looks a done deal.
    • Thrugelmir
    • By Thrugelmir 30th Nov 17, 10:55 PM
    • 56,183 Posts
    • 49,567 Thanks
    Thrugelmir
    • #6
    • 30th Nov 17, 10:55 PM
    • #6
    • 30th Nov 17, 10:55 PM
    Shareholders do not have to agree with the Company's management.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Tom99
    • By Tom99 1st Dec 17, 1:46 AM
    • 665 Posts
    • 396 Thanks
    Tom99
    • #7
    • 1st Dec 17, 1:46 AM
    • #7
    • 1st Dec 17, 1:46 AM
    You need to make the same decision, whether to sell now at what appears to be a high price or hang on for an even better offer. Is it a wholly cash offer or part shares part cash?
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