Replies to post #160231 on Elite Pharmaceuticals Inc (ELTP)

[mrwrn2010]

I have wondered about the answers to both questions as well. Thanks for posing them to the board!

[lasers]

Ask you broker and get an official answer.

[hondobud]

What happens depends on when the buyout offer hits. IMO if you have a buyout offer premarket you can pull your shares off before the open. Your shares (@ $4.90) below the buyout price would probably disappear before a halt could stop the trading during market hours. After an agreement to buy has been reached you can sell anytime @ 97-99% of the offer price (appx) or hold up until the deal closes for the full price. If you hold it's because you think there's a possibility of more bidders. Waiting to see if any other interested parties outbid the company making the announced buyout offer is OK if you can take the profit into the next tax year, or you don't care about money being tied up for a few months. Usually if you offer to tender your shares in a structured deal you can request to cancel your tender and get your shares back if bids come in higher than the price you tendered at. Also remember offers can be rescinded, so selling at or near a tender offer price is what many investors do, IMO. GL.

[bms65]

if offer comes in as usual in after hours or pre-market, then next day your shares with limit sell order will execute at market price if higher then your sell price.. lets say market opes up at 5.99 bid, then your shares will execute at 5.99 even if you had sell order of 1.99 placed a day before.

[bms65]

oh and by the way, your 8.60 sell order will NOT execute at all until bid reaches 8.60..so always have to keep an eye out, seen to many orders not filled over 1 penny.