Shares and the inflated price due to looming merger

twigpig

Hi guys,

I'm just looking for some general advice at this point without going in to too much detail. I have some shares in a company that's due to be bought out/merge, whatever you want to call it. (Actaully, I have 2 plans - 1 that is actual shares, and one that are share options).

As a result of the pending merge, the share price is higher than it's ever been before. Is it lilkely that when a merger actually completes, that the share price will take a dip? I can cut and run with a nice profit, or opt to takes shares in the new combined company. I'm expecting to leave my actual shares post merger to benefit from the "consideration" being paid to shareholders, but in the share option, I can cut and run, with a pretty nice profit or opt to convert them to a new option, where it would run for less a year, so little time to recover if a dip is usual.......

Any general advice would be appreciated, as I'm not very familiar the impacts of share prices of companies post merger.....

thanks

MoneySaverLog

Could go either way, and that's what will make a market.

I know the original British Gas shares would have been better off holding onto, as they split a number of times and you'd now have shares in BG Group, Centrica and National Grid. All of which have done very well.