Buy out - stock price rises for smaller company?
Started by
muppet
, Dec 26 2006 07:45 PM
2 replies to this topic
#1
muppet
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Posted 26 December 2006 - 07:45 PM
When a large company buys out a smaller one, does the stock price of the smaller company typically go UP? Been hearing some rumors and just wondering what typically happens ... or is it unpredictable? Any comments welcome.
Thanks, Muppet
#2
James Quillian
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Posted 26 December 2006 - 07:55 PM
When a large company buys out a smaller one, does the stock price of the smaller company typically go UP? Been hearing some rumors and just wondering what typically happens ... or is it unpredictable? Any comments welcome.
Thanks, Muppet
Yes
The larger company has to pay above the market price to get all of the stock they want.
Look at a chart of APCC.
See the gap between 10/27, a Friday and 10/30 after the buy out was announced.
This one is pretty typicall.
James
#3
muppet
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Posted 27 December 2006 - 12:44 PM
Thanks so much ... appreciate it.
Happy New Year,
Muppet 
