Based on my limited understanding of short-term and long-term capital gain taxes in the US, when should I tender my shares?
If I purchase shares of company X on 1/1/2020 and company Y announces an attempt to acquire company X on 6/1/2020. Let's assume (a) the deal is approved and (b) it will takes 8 months to complete the acquisition.
If I tender my shares on 6/10/2020, I only own the shares for ~6 months and profit from them for <1 year. I assume the profit would be taxed as a short-term capital gain (higher taxes). If I wait until the acquisition is complete, I would own my shares for >1 year, sell them at the same price as the tender offer and make the same profit for >1 year but would be taxed for the long-term capital gain (lower taxes).
Does the saving from the long-term capital gain tax justify the wait ?