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marketmaker25

05/01/07 2:19 PM

#190 RE: Guardian #189

It might be what they want in terms of a higher price but my point is that it might not be what the potential merger partner wants. In an all share deal (if they believe that prices will appreciate) the merger partner will want maximum shares at minimum price not a reduced number of shares at a higher price. This is often done to sweeten the deal by the suitor. As a result the price is held down until the business at hand is completed.