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Share price.
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Redacer
- Posts: 43
- Joined: 21 Jun 2016, 13:24
- Gender: Male
Share price.
What happens if at the time of payout on shares that have been agreed to be sold, the share price is higher than the 360 + dividends that was offered.
lfc77
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robking
- Posts: 236
- Joined: 19 Dec 2020, 12:14
- Gender: Male
Re: Share price.
The payout won't happen unless the bidder has control (over 50%) and had declared the bid unconditional, which means everyone will get their payout unless for some odd reason they don't want it.
Once the offer does become unconditional, obviously nobody is going to pay more in the market than what the bidder is going to give them.
If the stockmarket or some large shareholders feel that the bid undervalues the company or that a rival bidder may emerge an offer more, they might hold out and stop the bidder getting control and sometimes in this situation the price on the stockmarket can be above the offer price.
The bidder then has two options, he can increase his bid so that those holding out might give in, all accepters will get the increased offer even if they accepted earlier, the second option is he might just walk away and let the offer lapse.
Once the offer does become unconditional, obviously nobody is going to pay more in the market than what the bidder is going to give them.
If the stockmarket or some large shareholders feel that the bid undervalues the company or that a rival bidder may emerge an offer more, they might hold out and stop the bidder getting control and sometimes in this situation the price on the stockmarket can be above the offer price.
The bidder then has two options, he can increase his bid so that those holding out might give in, all accepters will get the increased offer even if they accepted earlier, the second option is he might just walk away and let the offer lapse.