Buying stock in a company you anticipate will be selling a portion of its assets

While your at it you may as well play the winning lottery numbers, right?

Spill the beans!

Its been announced. Whether it will come to fruition is up in the air. Pretty sure I'm not breaking any insider laws or anything

Yea if the deal falls through I don't think the stock will plummet its still a fortune 500 (top 250). Only thing that I guess would hurt is if the stock takes a hit when the deal does go through. As an employee I won't be able to own both stocks so I'll be selling the acquired company stock within 6 months of the transaction. My whole end game is basically to acquire "free" stock in the new company

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Paid in stock shares - now own stock in both companies

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That's not how it works. There is only one surviving company with one stock surviving.

Not sure what you mean both companies will still be traded. The seller is only selling off a portion of its assets

Under the proposed transaction, the commpany will sell its assets into a newly formed entity. Shareholders will receive 50.1 percent of the shares of the new company.

Or you could just read the thread contents. Not sure howto word assets being sold off as part of my title

now tell me how to handle this situation, please

There are too many unknown variables to generalize what will happen to each company's stock price, IMO.

For example: Why is the selling company selling? Are they desperate for cash? What will they use the new cash for, for R&D, to pay down debt, to expand locations or new products or just to meet current operating expenses?

Will the acquiring company be able to generate IRR and additional cash flows on the new assets that exceeded its pre-purchase IRR and cash flows? How long will it take for the improved IRR and cash flows to develop?

Each situation of this type is so unique, I don't think there is a general rule how it will affect each company's stock price.