RE: Picked more up8 Feb 2023 15:49
Ianfm does a buyout not usually have the opposite affect?
Only if its been annouced, if its a buyout that no one knows about yet, apart from C-level then the buyer will aim to tank the stock as much as possible so the buyout price seems a lot better than if it were higher
if NEX were 150, and the buyout was 250, then thats an increase of 100.
if they tank the stock to 100, then buy for 250, thats seen as a buyout premium of 150, and thus more likely that the shareholders will agree to the buyout. in reality, this is 100 premium and 50 phantom premium, as they tanked the stock before hand.