I will post a long details of this subject of "stock to stock merger" when I have time to find more info...for the mean time...you REAL longs out there, please help to search for these:
Dig in the "prior merger" r/s subject
or the share exchange merger
or stock to stock merger
"Immediately prior to the merger, Tyco WILL effect a reverse stock split so that Tyco shareholders will receive a fixed exchange ratio of 0.9550 shares for each of their existing Tyco shares."
Things should go in this order:
1. Announcement of BO news first (I believe this will be the next few more days!)
2. WILL r/s later based on merger plans (have to do with the valuation of BO!) & vote results (of course the planned of voting for r/s = already in placed); that is why we already have the DEF14A w/ the fully diluted # in the filing..
3. The official share adjusted in details will be on the effective date of the merger agreement...how many r/s ratio applied.
Think about this: How can we share exchange a .37 per share stock with $125 per share stock. Logically, that is why the r/s come in plays, but BO news will come first, then the R/S will be applied based details of the ratio on r/s will be used for share exchange purpose & that is based on the BO valuation price. These both # are related for this share exchange deals of merger.
In the DEF14A...the proposed ratio of R/S is 1:2 to 1:15 range:
1:2 = 24 mils fully diluted shares X $125 per share = $3 Bils (This is maximum BO Valuation!)
1:3 = 16 mils fully diluted shares X $125 per share = $2 Bils
1:4 = ....
& so on ....
1:15 = 3.2 mils fully diluted shares X $125 per share = $400 Mils (This is the miminum BO Valuation!)
Guess all you want from $400 mils to $3 Bils BO valuation.
We will know how much it will be once the BO news hit the st.
I would say sometimes next week or 2nd week of August!