M&A7 Mar 2021 19:14
Example of a Takeover Premium
In August 2017, online retail giant Amazon.com received regulatory approval to take over Whole Foods Market, Inc. in an all-cash deal valued at $13.7 billion or $42 per share. The deal’s value represented a 27% takeover premium on the Austin, Texas-based organic grocer’s latest closing price at $33.06 before the announcement of the transaction.
If we get a 30% premium, that's 36.4p/ share why would anyone pay more?