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Re: Grifter post# 35943

Sunday, 05/13/2012 10:21:00 PM

Sunday, May 13, 2012 10:21:00 PM

Post# of 84960
You already have the answer for that question, all you are trying to do is scare the investors in HBRM in this room, but this is the wrong room to do that, nobody here is ignorant, and when buyout takes place, or mergers take place, a number of things happen as follows;
It depends on what kind of buyout it is. Sometimes one company pays cash for another, sometimes they pay with shares of stock of the acquiring company, sometimes it's a little of each.

If the buyout is a stock deal, you would get some number of shares of stock in the acquiring company for each share of the bought company that you own and again that would be automatically put into your brokerage account within a few days after the transaction closes. As an example, if you own 100 shares of XYZ and JKL buys them for 0.83 shares of JKL stock, you would end up with 83 shares of JKL when the deal closes. The 0.83 (or whatever the number is) would be stated in the buyout announcement and also included in the (usually several hundred page) document that you get either electronically or in the mail with the proxy card when you're asked to vote whether to approve the deal.
So, in any case, acording to how the deal is made, everybody wins, in some cases, the company that buys out another, might drop in value, if the purchase has been made with cash, depleting the cash power that the company was sitting on, but a company knows that, so unless it really is worth the cash buy, that could bring fast profits buy the company bought, it mostlly takes place with shares, wich trough other arrangements and contracts, whomever receives the payment of stock it is not allowed to sell until the company's stock reaches a certain value on the market !