In that scenario we get a dividend of a $100 per share, price goes up because everyone wants to jump on board and get the dividend right!!!! Not sure it works that way. I did that once with Microsoft they paid a huge dividend. Stock price went the other direction. I got my $3,000 at the time and the share price was reduced I believe based on that. Must of been $3.00 per share. So it went say from $30 to $27. So if IOC has such a small float there has to be some pressure when everyone is going to want in the game. Of course we may not get that dividend and scenario. Really doubt that scenario occurs but others have stated that could be a possibility. How about reality 50 million shares rounded and they pay $10 dividend and price per share drops to $49. They pay $500 million dividend. Seems small but I do think share price has to reflect it. I am sure some of the veterans will correct my thinking if necessary. I prefer the complete buyout for $200 plus not sure that is reality just wishful thinking.
You're comparing apples and bananas when you use Microsoft. That dividend would reduce price share by a comparable amount as they are reducing the equity value of their assets. In IOC's case they would have concluded a deal, which should increase pps value and we would receive a dividend to boot. I think a $100 dividend is unlikely, but a $10 one is very doable. Of course under this scenario alot more would have to offered to consumate any kind of deal