GREY:OLEPF - Post by User
Comment by
hoosier1on Nov 05, 2012 9:36am
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Post# 20562041
RE: RE: RE: RE: buyout prize
RE: RE: RE: RE: buyout prize I hear what you are saying tony... but that is not the way it works.
In a buyout, the purchaser must offer a set price... then the structure of how that price is paid out...via % stock offer & % cash... is then stated. If the offering company's stock price drops, they have to poney up more cash or more shares to hit the agreed price.
Has to happen this way for GAAP...otherwise the purchase price would fluctuate during the transaction period, which is unworkable/unrealistic.
h1