So lets say in theory that a stock OCZ gets bought out at 14.
I would assume that the stock would instantly move to 13.50- to 13.80 based on this but w/ a slight discount due to the time factor of it closing (time risk).
Now the real question is given that 40.6% of ocz is short (source key stats on yahoo) would the stock go past 14 a share? I mean, the shorts HAVE to cover and w/ the current volume it would take?
Last year I sold Quadra FNX Mining for $15.75 while the offer to purchase this Canadian miner by a Polish company was for $15.00. The price stayed above the offer for a while, of the order of a month or so before it drifted back to slightly below the offer when the market realized that a counter offer would not be forthcoming.
too many variables to know how it could go down. for example some recent buyouts that come to mind show 3 different results.
INHX buyout was at 26, but share price stuck in 24-25 for several weeks.
QSFT buyout was at 28, and share price opened within .25 cents after announcement (27.74).
ARBA buyout was at 45, but share price extended past that to a high of 45.48 before correcting.
There's reasons for all of these of course. Point being, nobody on these forums can say what it would do without knowing more details. I think depending on when the deal gets announce could of course impact things as well.
Look at any recent BO and you'll see .5 - 3% SP above stated purchase price. Maybe the bots or maybe speculators banking on a bidding war. It's usually intraday only when it happens, but to be honest, who cares??
"The Acquiring company will also be trying to purchase shares on the open market at any price less than the agreed to price at closing."
no this would be a hostile takeover where you are trying to buy into a company from acquiring their shares on the open market.
explain what does a poison pill have to do with a company that is looking to be sold? those only kick in if you are in a hostile takeover...
thanks for wasting my time typing two responses to you...