InvestorsHub Logo
Followers 295
Posts 21297
Boards Moderated 18
Alias Born 07/25/2003

Re: StockCroupier post# 9192

Tuesday, 03/15/2011 11:19:59 PM

Tuesday, March 15, 2011 11:19:59 PM

Post# of 23361
I'll take a stab at that one.

Typically the way this works is that the acquiring company (SLMU in this case) issues additional shares to the owners of the company being acquired (which could be public or private).

At this point you would still have our shares, but they would represent a smaller portion of the pie, since more shares were issued to make the acquisition.

How good a deal this is depends broadly on two things: what % of the total shares outstanding after the acquisition are owned held by us, the people who owned SLMU before the acquisition (the higher the better for us) and how big the new pie is, or in other words, how valuable the assets and operations being acquired are (the higher the better for us).

You will not get separate shares in the new entity--after the merger those assets are part of what each share of SLMU is in fact a share in.

If I could afford to buy all of them, I would not need to buy any of them and I sure wouldn't be spending time on the message boards!

Join InvestorsHub

Join the InvestorsHub Community

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.