179

A bit of detective work. The website lists no names for the firm. Any business, doctor, lawyer, etc, is at least going to tell you who the main partners are. The site itself looks like a generic framework with literally no content, just placeholders. A web designer's first pass for a client. But not a real site. The website for the building at that address ...


62

Shareholders of Monsanto will get the money from Bayer. Shareholders are independent people or entities. Think of Monsanto as a thing that shareholders had. This thing is now being purchased by Bayer


45

Purely FWIW, "Does this sound legitimate?" The company no longer trades on any stock market as it is in receivership. There is no administrative board to contact, and it doesn't even have a valid corporate ID any more, therefore research options are very limited,as you can imagine. Upon receipt of your signed documentation, I will put you in the ...


38

Definitely a scam. Some warning signs in the email: Please find attached the documents pertaining to the investment that you made in XXX Investment currently known as XXIT (XXX XXX Investment Trust) several years ago. Legal letters are usually very precise in their wording. I would expect a real lawyer to specify exactly which documents are attached. Not ...


29

It is not unusual for the acquiring company's stock to fall in any time of merger announcement. Some of it has to do with the fact the acquirer is going to either take on new debt to pay for the cost of the acquisition or they will need to issue new shares. Either is dilutive to shareholder value, so this is "baked into" the process. In the instant case, ...


24

Monsanto is a publicly traded company that trades under the ticker MON. The stock is owned by a wide range of owner around the world. The buyout offer from Bayer is an all cash offer. Bayer will buy all shares of MON at about $128/share. So if I owned 100 shares of MON, I would receive $12,800 or so for my shares. The deal has not yet been approved by ...


24

The deal is 1 share of TMUS for every 9.75 shares of S. If it goes through then you will receive 205.13 shares of TMUS for your 2,000 shares of S. If Fidelity does't deal with fractional shares then you'll receive 205 shares and the cash equivalent of .13 shares. They will handle the share exchange transaction for you. I don't deal with them so I don't ...


19

Yes, it was announced in October of 2018, that IBM will acquire Red Hat (RHT) for $190 per share. In January, Red Hat shareholders "approved the adoption of the agreement and plan of merger, dated as of October 28, 2018". IBM expects to close the deal in the latter half of 2019. You can sell for approximately $182 now or you can wait and receive $190 ...


18

In case I provide my bank account number (IBAN number in the EU), how will they be able to abuse this? There are multiple ways. In this case, it could be that once you give the details, they will mention that you need to pay something [lawyer fees, capital gains tax, other such items] before they release the funds to you. Further threatening you about ...


17

It is not a "riskless" transaction, as you put it. Whenever you own shares in a company that is acquiring or being acquired, you should read the details behind the deal. Don't make assumptions just based on what the press has written or what the talking heads are saying. There are always conditions on a deal, and there's always the possibility (however ...


14

Dheer is correct in the general case (and probably all Private Equity cases), however, there are a few exceptions: Buyers can offer to "assume" the liabilities of the acquired company in exchange for a lower purchase price. In that case, the debt is transferred to the acquiring company Individual bonds may have "change of control" clauses that allow ...


13

Markets are generally skeptical of the benefits of mergers. History shows that the benefits of merger claimed by the company doing the purchase rarely materialise. If on the day prior to the announcement the markets value company A as 50 billion and company B as 20 billion, then the market values the combined company at 50 + 20 = 70 billion if they see no ...


13

It's tempting to think of a corporation as a real thing, because in many respects it seems to be. But it isn't a corporeal thing (despite the root word of the name). It may own corporeal things, and employ corporeal people, but it is not itself a real thing. Borrowing heavily from Prof Joseph Heath: It might be better to think of a corporation as the nexus ...


13

This sounds like a scam, how really depends on the paperwork they want you to sign. Here is an additional piece that is cause for concern: I did a reverse imagesearch on their about picture and it is a placeholder. Now there might be a reason to choose a placeholder instead of showing your partners but its at the very least unusual. Also searching for ...


12

Is the new Private Equity Firm responsible for that debt? Say Company A has issued Corporate Bonds, even if the ownership changes to Private Equity firm; the entity Company A remains the same and is still responsible for the debt. If Company A merges with another company [a Private Equity Firm], then the new entity is responsible for all the debts.


11

Whether you think it is a scam has nothing to do with reality. People too easily convince themselves of things they want to believe -- a scam is a confidence game which revolves around making you want to believe. The message should be presumed to be fraudulent. Mind you, I treat exactly the same way every "latest things on Netflix" email, I would never ...


10

I am a flight attendant on a private jet and I hear a bank CEO discussing a merger or a buyout. I proceed to purchase that stock before the announcement. The CEO did not tell me to buy it, I just overheard him. If you are a flight attendant on a private jet that is operated by one of the principals, probably including a bank, attorney, consultant, ...


9

The stockholders of company A vote to approve or disapprove the buy out. That is the only control you have on the price: Vote to approve or disapprove. If the deal is approved then you get the money, or stock in B, or both, in accordance with the terms of the deal. It will arrive into your account automatically.


9

Similar to the reverse search of the image mentioned by @other_paul, a useful check for plagiarism is to find an 'unusual phrase' and see if it appears elsewhere. For example, I took "caring about a client's cost restraints" from their about us page (I'd expect 'constraints' instead of 'restraints'). Using that phrase (including the quotes) in a google ...


9

The remaining 25% would be immediately absorbed by the new owner and have no financial value whatsoever to the existing shareholder. Under US law this is perfectly legal and a commonly used practice of acquiring full control through the purchase of a majority interest. I'm not a lawyer, but I am certain that this is not perfectly legal and not a ...


8

company is bought by another company This depends on how the deal is structured, it varies from case to case basis. Plus it is also how much percentage the new company is buying, the local regulations. All Cash Deal: Everyone of the old company is given cash at valuation rate. You can on your own buy shares in new company. Share Swap: The Swap ration is ...


8

Each company likely does so for its own reasons. Your examples: Starbucks apparently bought Teavana because they wanted to sell their teas. According to Polygon, Razer's June 12 purchase only included the content catalog, software assets, online store and name of Ouya; it didn't include the now-dated console or poorly received controller. In ...


8

What chart are you looking at that Red Hat stock is declining? The acquisition was announced over the weekend and the company shares saw a massive increase in the face of yet another broad market sell off. Typically, the company being acquired has a price bump and the acquiring company takes a hit; which is what happened (very unsurprisingly) here. I'd say ...


7

Typically, stocks are falling because more people try to sell than to buy. Why they try to sell is anyone's guess. In this case, it seems that not everybody shares your optimism; you might not have all the info, or you are evaluating the data differently than others.


7

That price is the post-tender price, which already reflects arbitrage. It's less than $65 on the market because that's the highest offer out there and the market price reflects the risk that the $65 will not be paid. It also reflects the time value of money until the cash is disbursed (including blows to liquidity). In other words, you are buying the ...


6

When they entered Bankruptcy they changed their stock symbol from AAMR to AAMRQ. The Q tells investors that the company i in Bankruptcy. This i what the SEC says about the Q: "Q" Added To Stock Ticker Symbol When a company is involved in bankruptcy proceedings, the letter "Q" is added to the end of the company's stock ticker symbol. In most cases,...


6

Short answer: google finance's market cap calculation is nonstandard (a.k.a. wrong). The standard way of computing the market capitalization of a firm is to take the price of its common stock and multiply by the number of outstanding common stock shares. If you do this using the numbers from google's site you get around $13.4B. This can be verified by ...


5

The perfect conditions to sell a business are when it is very valuable (lots of profit each year) and you've lost interest in growing it any further. Also if you're in a particular industry when everyone is dying to get into that industry (like the dot com bubble) those are perfect conditions to sell. Other things like low interest rates and excess M&A ...


5

"Buy the rumor, sell the news". That's often a good strategy, since most people tend to be optimists rather than pessimists, and reality turns out to be worse than they hoped for. It's also a good strategy, because if the majority of other investors think it's a good strategy, the price will rise when they all try to buy, and fall when they all try to sell.


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