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HDGabor

02/25/21 11:15 AM

#326759 RE: tke458 #326754

t-

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.

The premium % is the same a given % (let's say 100%) is justifiable at 400MO/S as at 40m O/S ... since the total payment is the same (let's say: 600M), the buyer will not be influenced by the share count it does not care of it.

Best,
G