purchase company stock
Question
Takeover of a publicly traded company?
Say that a buyer wishes to purchase company XYZ, its shares are traded on the stock exchange and let's say 70% of its shares are owned by institutional investors and 30% by minority shareholders. If enough shareholders agree to a price, let's say its trading at $10 a share and the buyer offers $20 a share, can everyone be forced to sell their shares? If not how is it possible to obtain total control over a publicly traded company?
1 month ago - 1 answers
Best Answer
Chosen by Asker
They don't have to sell you the shares, but if they don't then they are stuck in a minority position and have no control of what's going on. You can make an offer to buy as long as a high percentage of shares are tendered (say 80%). You can explain that upon acquisition you are going to do certain things (change bylaws, etc.) If less than the required number of shares is offered, you can withdraw the offer and the stock will fall to wherever it was before.
by Bonimba
1 month ago
Asker's Rating: 