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re: Oil prices and stock market

Posted on 12/12/14 at 1:47 pm to
Posted by Indfanfromcol
LSU
Member since Jan 2011
14741 posts
Posted on 12/12/14 at 1:47 pm to
quote:

How I started as well, should be required reading.




Both were great, and honestly probably learned more from those books than I have in most of my classes at LSU



Question, what happens to a companies stock if they get bought out by another, larger company?
Posted by Lakeboy7
New Orleans
Member since Jul 2011
23965 posts
Posted on 12/12/14 at 4:17 pm to
quote:

what happens to a companies stock if they get bought out by another, larger company?


I can speak to the legal side a bit, it depends on what kind of sale, asset v. stock for example.

If you google that it gives you the outcomes with regard to the stock.

Also look at a biz law class that covers basic merger and acquisitions. There are some guys here that can talk about share valuations, asset discounts etc.
Posted by Lou Pai
Member since Dec 2014
28190 posts
Posted on 12/13/14 at 1:53 am to
Commonly, the target's share price goes up due to a takeover premium usually being incorporated. For the buyer, it generally depends on whether or not the deal is accretive to earnings.
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