Replies to post #326740 on Amarin Corp Plc (AMRN)

[HDGabor]

g-

100% premium from $7.5=$15:

40M S/O,premium paid=$7.5*40=$300M;400M S/O,premium paid=400M*7.5=$3B

150% premium from $7.5 = $18.75:

40MS/O,premium paid=$11.25*40M=$450M;400MS/O,premium paid=$11.25*400M=$4.5B

$4.5B-$3B >> $450M - $400M, i.e., law of large number

Nobody makes offer on a per share basis ... the per share calculated from the offer afterward (is not vica versa)

100% premium from $300=$600 (MC):

40M S/O, premium paid=$300M/40=$7.5/share=100%;
400M S/O, premium paid=$300M/400=0,75/share=100%

The premium % is the same, it is independent from the share#

Best,
G

[rafunrafun]

G - I don't understand what any of that means. But the # of outstanding shares is irrelevant. Just convert the # of shares to MC (# of shares × PPS) and deal with the MC instead of # of shares.

# of outstanding shares could be changed via a (reverse) split at any moment, without effecting the MC, so it is irrelevant.

[tke458]

I totally get your point. I also get some of the other posters points. To summarize:

- When negotiating a buyout, the acquiring company ultimately comes up with a $ amount they are willing to pay

- that amount then gets converted into a price per share....

- Your point is that when a company has a huge outstanding share position, it may be harder to obtain a higher premium, because the increase in market cap associated with said premium may not be justifiable from a valuable position.

This goes to BioBills past posts about how all the past roadblocks have destroyed a significant part of long term value, as we’ve needed to issue more stock, etc.