Thanks for your reply. Do you mean that the institutions will be willing to sale their shares to TOTAL at the offereing price. Does this also mean that SPWRA has get agreement from their institutional investors to sale their shares to TOTAL? What does oversubscrption means? Thanks
Total spells out the terms to buy 60% from market movers, financial institutions or those that hold the majority. This is done instead of a hostile attempt to buy the stock from individuals, those that hold a lot of stock then wanting some ridiculous price in order for TOT to hold majority share
I am in this business, but primarily on the other side of the world. Total had an investment banker help broker the deal. The bankers responsibility is determine a fair price, but just as important, they should not embarrass their clients. Therefore, before any deal is done (except rush deals, like the reason merge of trouble financial institutions) the bankers will try to get a idea of the probability of the tender going through. In this case, Total has been shopping for 2 years, so there was plenty of time to have cocktails and informal conversation to determine if the interest level was high enough to get 60% of the shares.