GREY:ATBPF - Post by User
Comment by
Straylighton Apr 21, 2021 9:17am
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Post# 33035936
RE:RE:RE:Just a thought
RE:RE:RE:Just a thoughtI have been wondering about this for a while now. If I was big pharma and looking at doing a buyout, anything you can do to lower the MC of the company is going to strengthen your bargaining position.
I don't know enough about how they operate to say what the likelihood that they are doing that is. But at least from a purely theoretical standpoint if you were willing to buy a company out for say $4B and the current MC is $200m, the closer you can keep it to $200m the less likely you will need to spend the full $4B that you may have been willing to spend. It may cost a few hundred thousand or even million to buy and dump shares but you would be saving way more than that in the long run.