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


1
So this is one publicly traded company acquiring another one.
What happens to the shares that you own (in the smaller company)?
Do they somehow get adjusted with accordance to the acquirers stock price?

3 Answer(s)


2

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

2

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).

0

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.