RE:Question
If Baxter's buyout offer is at a price of $3.00 a share to Spectral shareholders (but it is not a cash buyout but an exchange of Baxter shares for Spectral shares); and, if at the time of the buyout offer Baxter shares were trading at $30 a share, Baxter would offer Spectral shareholders one share of Baxter stock for every ten shares Spectral shareholders own, i.e. one Baxter share for ten Spectral shares.
This kind of an offer would cause Spectral's share's to immediately move up to around $3.00 a share at which time Spectral shareholders can decide to sell their Spectral shares in the marketplace for around $3.00 a share, or elect to exchange their Spectral shares for Baxter shares and hold or sell their Baxter shares at any time after the buyout is completed.