This is what I think will happen to TALK (Buyout). That IMO is why Lee converted preferred shares into common shares.
When a company is bought out by an individual or another company, the purchaser will usually take possession of all of the common or voting stock of that company. The buyer can offer cash or the stock of its own company in exchange for the target company’s stock. As preferred shares are generally not voting shares, it is not necessary that the purchaser redeem or buy them out when taking over a company. The buyer has the same options as the original owner in dealing with the preferred shares http://smallbusiness.chron.com/happens-preferred-stock-buyout-68487.html
Nothing I state is intended to be a recommendation to buy or sell, opinion only. Readers are solely responsible for how they use the information.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.