What happens to the shares you own in a company if gets acquired by another company?


3 Answer(s)


Yes absolutely a Good Question Manisha
Whenever there is Takeover,Merger etc the shares which u are holding in a Smaller Company would Surely be Exchanged in the Swap Ratio as Decided by the Acquirer i.e Buying Company.
I would like to Give a Brief Example on the Satyam-Mahindra Merger which took Place in June 2013.the Shares in Satyam Computers were Exchanged with the shares of Tech mahindra for those Shareholders in Satyam.
Swap Ratio was 1:8.5.

Hope you got it and in case of any queries please put up again

Depends on how they are bought out. They will announce X is buying Z for cash, cash+shares, shares, etc. Cash means when it is 100% done your stock will be sold, and you will just get money in your account, shares, you lose your share in Z and get equal amount in Z (Equal price wise, not number of shares).

The terms of deals will become news when they are announced. Some offers will be all cash, some all stock, and some part-cash part-stock.