Stack Exchange Network

Stack Exchange network consists of 175 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange

Questions tagged [corporate-acquisition]

The tag has no usage guidance.

0
votes
1answer
21 views

What Happens to OTM Puts Following a Cash Aquisition?

Say I purchase OTM puts with a $5 strike and the underlying company is acquired through a tender offer that pays $19.00 cash per share. My contracts are accelerated and adjusted to reflect the new ...
0
votes
0answers
29 views

Do you know of a free, online source for a history of corporate actions? [closed]

Over time, companies may change their stock symbols, spin off other companies, or merge with or be bought by other companies. If one has a company name or symbol and a date, is there a good way to ...
0
votes
0answers
30 views

If I have stock that is unregistered at the time of a company buyout does my stock automatically register?

I was a contractor for a small public company for which I received stock compensation. There is a fee to register the stock so I am waiting to see if the stock ends up being worth anything before ...
13
votes
1answer
1k views

Acquisition - what happens to stock? [duplicate]

It was announced in October of 2018, that IBM will acquire Red Hat (RHT) for 190 per share. I have shares of RHT. Current price is in the 180 range. What will happen next? Will my shares be converted ...
0
votes
1answer
33 views

How to square a rising share price with the company diluting the value of its existing shares [duplicate]

Company A's share price in the market continues to rise while at the same time, the company keeps announcing that they are issuing new shares for multiple M&A transactions. How is this possible ? ...
2
votes
1answer
78 views

What happens to the shares (of company A) in a “brokerage account” when company A gets bought?

I understand what happens to the shares of a company when the company is bought. What is not clear to me is if I own those shares through my account in a brokerage firm (e.g. Vanguard, Schwab, eTrade),...
3
votes
1answer
111 views

Do I need to sell my shares during a merger proactively

I hold shares in the publicly traded company I work for. This company is now being acquired via a cash merger by a second company. They put out a press release expressing their intent to buy all ...
2
votes
1answer
96 views

Why did ESL need to pay $5.2Billion for Sears Holdings?

Related to this question. Yes, I know that the operations of a big company isn't directly related to personal finance, but understanding this seems an important part of investing, for instance SHLD ...
2
votes
1answer
64 views

Tender offer - offer price vs. market price

I recently acquired Pacific Biosciences shares, which Illumina has offered to purchase 1.2 billion dollars of, at 8$ per share. After this announcement, the share rose at 7.56$ per share. Is the price ...
4
votes
2answers
467 views

Red Hat acquired by IBM

I have few questions in light of recent news IBM to buy Red Hat Why would Red Hat's price be going down? Is it because some people/organisations had the stock on hold and decided to sell it instead ...
1
vote
1answer
66 views

Acquisition Stock Holder Approval

I am working on a research project on acquisitions/mergers. I have been reading the details of Amazons acquisition of Whole Foods. In the articles that I'm reading, I see that Whole Foods shareholders ...
0
votes
1answer
104 views

Selling options on acquisition

I've been trying to understand this hypothetical scenario wherein a company in which you own options is acquired. In it, the author posits you own .67% and 20,000 shares ($2 strike price, $4 share ...
0
votes
2answers
267 views

What happens to a PUT contract for a company that is sold above the strike price and before expiration?

I'm thinking of selling long dated put contracts for a company that I believe may be acquired before the expiration date. I'll use SNAP for my example. What would happen to in the following situation? ...
1
vote
1answer
39 views

ANDV/MRO merger options

In the ANDV/MRO merger, ANDV shareholders can request MRO shares, cash, or a blend of both. What are the cap gains implications? I'm thinking that exchange of ANDV to MRO shares would trigger no cap ...
0
votes
1answer
61 views

Where do I find information around stock swaps?

Where can I track which stock has been swapped for another, and at which ratio? Below three swaps that happened in the past years: SolarCity (SCTY) stock got swapped for Tesla stock (TSLA). Whole ...
2
votes
2answers
162 views

“New Disney” what does that mean for me as Disney shareholder?

Recently Disney and Fox decided to merge and create a new company called "New Disney" 21st Century Fox And Disney Stockholders Approve Acquisition By Disney What does that mean for me as a "disney ...
7
votes
1answer
336 views

Why do big companies buy out sinking ships? (closing/bankrupt companies)

Hoping I'm in the right place to ask this question. Why do companies like Starbucks buy Teavana for 650m and then close all the stores? Razer buying the flunked Ouya then terminating all of Ouya's ...
21
votes
2answers
16k views

I have Sprint shares. What does this merger with T-Mobile mean for my shares?

Over the weekend Sprint and T-Mobile announced again that they would try to merge. Assuming the powers that be in the US don't have any issue with this deal and it moves forward as proposed, what ...
4
votes
1answer
72 views

What is the cost basis when selling shares received as part of an acquisition?

If I vested 100 options in StartupCo at a strike of $1 and I exercise then I will have paid $100 for those shares of StartupCo. If BigCorp acquires StartupCo and I receive $5 and .25 shares in ...
-3
votes
2answers
99 views

Acquisitions: Effect on stock price of Acquisitor and Acquired?

Per Investopedia's Acquisition Article When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. In general, the acquiring company'...
86
votes
10answers
25k views

I am an EU resident being contacted about stock I own in a defunct company by a supposedly US based lawyer, is this a scam?

I am based in the EU, so I have very little knowledge of how the US legal system works. I have been contacted by a "law firm" in the US about a financial issue: a company in which I own a small ...
6
votes
3answers
1k views

Found old paper shares for company that has since merged

My dad recently went through their safe deposit box and found a paper certificate for 4 shares in Northern States Power Company, issued in 1988. In 1998, NSP and New Century Energies of Denver merged ...
4
votes
1answer
86 views

As a shareholder in a private company that was acquired, what's the transaction date for my capital gains?

I'm a common shareholder in a US private company acquired in Nov 2017 by a US public company. I'm planning to wait until Jan 2018 to exchange my shares for cash+stock in the acquirer. (The M&A ...
3
votes
3answers
181 views

How much will a stock be worth after a merger?

Suppose I own a common stock in ABC Corp that's currently worth $32.00. Now XYZ Inc and ABC Corp have completed a merger agreement, with XYZ Inc agreeing to pay $36 for each share of ABC Corp, ...
2
votes
0answers
182 views

Can a buyout announcement cause a short squeeze above the announced takeover price?

Consider a company with heavily shorted stock. If that company puts itself up for sale and a friendly (shareholder approved) acquisition happens, can it result in a short squeeze driving the price of ...
2
votes
1answer
102 views

What affects bond value after an acquisition? [closed]

I have an academic question. If you are a bondholder and the company that issued the bond gets acquired what happens? I know that there are 2 possible paths: if there is a protection clause and if ...
10
votes
3answers
3k views

What happens to Bonds if a company is bought out by a private equity firm?

If you have Corporate Bonds in a company and that company is bought out, by a Private Equity Firm. What happens to the bonds that were issued? Is the new Private Equity Firm responsible for that debt?
1
vote
1answer
238 views

Why doesn't the market capitalization of a company match its acquisition price during a takeover?

Amazon bought Whole Foods for $13.7B, but Whole Foods' market capitalization jumped to $17.6B. How are the shareholders of Whole Foods going to ultimately compensated? Do their shares turn into cash,...
9
votes
2answers
485 views

Is it still insider trading if no benefit was exchanged or received from the information?

Note - I have seen the other questions but they are still vague and explanations parsimonious. Is it still considered insider trading if no benefit was exchanged or received from the information? ...
1
vote
1answer
1k views

why is minority interest included in enterprise value?

Per Investopedia (http://www.investopedia.com/terms/e/ev-ebitda.asp): Enterprise Value = (market capitalization) + (value of debt) + (minority interest) + (preferred shares) - (cash and cash ...
6
votes
2answers
965 views

Is it legal to not get a 1099-b until March 15?

It is Feb. 16 and I haven't received a 1099-b for some stocks that sold that last year. The stocks were sold because the company I had stock in (Questar) merged with another company and all Questar ...
1
vote
3answers
2k views

JCI headache part 2: How to calculate cost basis / tax consequences of JCI -> ADNT spinoff?

In addition to part 1, in which JCI and TYC merged, I am trying to figure out the tax consequences of JCI's spinoff of Adient (ADNT). JCI spun off 0.1 share of ADNT for each share of "new" (post-...
2
votes
2answers
5k views

JCI headache part 1: How to calculate cost basis / tax consequences of JCI -> TYC merger?

I owned 136 shares of Johnson Controls (JCI) before its merger with Tyco (TYC) and later spinoff of Adient (ADNT). After the Tyco merger I received 113 shares of the new JCI along with cash-in-lieu, ...
5
votes
1answer
513 views

What happens to my stock when a company I invested in gets bought by another company?

If a company is bought by another company, does my stock rollover to the new company when it is combined with the new parent company?
19
votes
5answers
8k views

Why is AT&T's stock price declining, during the days that they announced the acquisition of Time Warner inc.?

Why does the stock price decline when a seemingly promising acquisition is announced & agreed on?
43
votes
3answers
9k views

Who receives the money when one company buys another?

I read this article about Bayer buying Monsanto. The question which came to my mind was: Who receives the money? If Monsanto receives the money, and Monsanto becomes part of Bayer, then doesn't ...
0
votes
3answers
332 views

Why do people buy stocks at higher price in merger?

http://www.wsj.com/articles/microsoft-to-acquire-linkedin-in-deal-valued-at-26-2-billion-1465821523 Microsoft give 50% premium. Why?
4
votes
1answer
183 views

Upcoming company merger with company I have stock in, help me interpret what is happening

A company I have stock in just entered a merger agreement with another company. I received a letter today detailing what will happen to the stock I have in the company, but I don't understand what it ...
1
vote
0answers
196 views

Understanding AOL merger in respect to employee RSUs

I'm trying to understand what might happened to a company's employee time based RSUs in case of a merger. To do that I'm looking at what happened with the AOL merger: http://ir.aol.com/mobile.view?c=...
3
votes
2answers
712 views

401(k) not fully vested at time of acquisition

I've been working for AT&T for two years and nine months with a cliff vesting of 3 years my vesting date is April 15, 2016. It was recently announced on December 18, 2015 that IBM would be ...
0
votes
1answer
189 views

Options for Cash only Buyout due to Company Merger

On 12/3/15 Company shareholders of a company in Florida USA, voted to be acquired by a company in Nova Scotia, and the merger will take place in 2016. I was not in favor of this. This will be ...
0
votes
1answer
123 views

Why would a stock price raise above an initial tender offer price?

Company X received a tender offer buyout price of $8.50/share. Fast forward 10 days later and the share price has exceeded the $8.50 offered. Is this common and what is happening? It was in the offer ...
0
votes
2answers
127 views

What are the “perfect” conditions for selling a small private business?

As the title says. What the general opinion seems to be is that now is the best time ever to sell a small business because of low: interest rates, tax rates, and inflation, plus many large M&A ...
3
votes
1answer
123 views

Are there option strategies that exploit mergers and acquisitions events?

Are there any option strategies that can profit from mergers, acquisitions and buyouts? I don't mean insider trading. I mean after the news is out but the deal has not taken place yet, are there any ...
3
votes
1answer
2k views

What will happen to my shares if company delisted

I have shares in a UK listed company called Perform Group. It's recently been the target of a buy out by a private company, and I've received the following notification: AI PG LLC (AI) has ...
7
votes
1answer
1k views

What happens to my position if I hold some stocks of a company that gets acquired?

Say I have some stocks of the company A, and I didn't issue any orders on my trading platform. Some day, company B acquired company A. What would happen to me? Am I totally out of control for the ...
1
vote
1answer
1k views

What happens if I don't sell my share when my company is acquired

Scientific gaming is to acquire bally and will will pay $83.30 in cash per Bally common share. The shares are currently trading at around $78 from previous days close of around $60. I am not in ...
2
votes
2answers
238 views

As an individual investor, does it always make sense to sell a stock that's gone up due to a merger announcement?

Suppose I hold a stock that's recently had a run-up because another company has made a bid to acquire it. It seems like I should almost always sell the stock in this case, because there are only a ...
0
votes
1answer
224 views

How do I check my opening balance in Quicken 2014?

My Quicken account is way out of balance, and I think this all started a couple of years ago when my old bank decided it would be fun to delete the payee names on all of my old transactions on a sync, ...
11
votes
2answers
5k views

When the market price for a stock is below a tender offer's price, is it free money (riskless) to buy shares & tender them?

For instance, on March 11, 2014, Jos A Bank (JOSB) agreed to be acquired by Men's Wearhouse for $65/share in cash. A tender offer to existing shareholders was set to expire on March 19th. On March ...