Antibe Therapeutics Inc(Pre-Merger) T.ATE

RE:RE:RE:Question on value of a deal

[MrMugsy]

Straylight wrote: I've got a question that's a bit of a variation on that. Say big pharma at some point comes along and decides to purchase the company as a whole. 

I assume there are a few options they could offer, straight cash, shares etc. I assume the board (as voted in by shareholders) would have the voting decision to accept or reject an offer or does it go out to shareholders as well (since insiders only own 11%)?

Is there kind of a typical formula for how that works for pharma companies in terms or cash vs shares?

Thanks for any insight.
BTW - I dont have a problem with the board making this call if this was to ever play out. I think they would land on a valuation that I could live with. I expect it would be a substantial increase from the current MC thats for sure. Also this is all just hypethetical, I don't know any more than anyone else (and who knows, maybe less!)

I can't say specifically for a pharma stock but I would assume that any offer the board received would be negotiated with a "go shop" clause that gives ATE a certain amount of time to go shopping for a better offer.  The first company would likely negotiate an opportunity to match any better offers found in that time period.  Once we decide on a final offer, I'd guess there would be a shareholder vote to accept the offer.

Cash or a combo of shares/cash ... depends how it is negotiated and what each side needs to complete the deal.  Big Phara seems to have a lot of cash on hand (in general).

Just my opinion ... should a buyout ever occur.