Replies to post #171752 on Biotech Values

[DewDiligence]

Agreed re time value of options; however, the need to have a new shareholder vote to increase the authorization of issuable options seems just as big a deterrent to a stock deal (if not more so), as does the unrelated issue mentioned in #msg-95205794.

[zipjet]

Thanks Peter

It is like taking an advanced course in M&A.

I did not know that OTM options were extinguished in a cash deal.

That seems an inequitable result for the employee.

[guerlain]

Thanks Peter, it's a very interesting discussion you initiated. Just curious how the option strike prices change in an all-stock deal, do they change proportionally at the time of acquisition close?