Take over process..in generalThe take over process is as follows( I have been trough at leaste 4 companies taken over, I like to find WAY UNDERVALUED stocks) Once negotiations are completed. A 3rd party financial voice will be brought in to provide an opinion on the "fair value" for both sides. That report will be part of the package sent to the shareholders to vote on. As well as the ONC BOD recomentation to accept or decline the offer. The offer as smentioned could be any combination of:
1. All cash AKA a/share price.
2. All stocks, Assuming Roche for example, you uold be offered XXX Roche shares in exchange for ONC shares.
3. Combination cash & shares.
4. A newly created co-therapy partership company, with % ownership of ONC & Roche ( again example).
5. An upfront deal, with biobucks attached. Complicated, but would include future value warrents, should various milestones come to fruition. Or any combination of 1-5 possible. Regardless a vote would happen with all details explained.
Those packages as I said I have been through a few times, will include
1. Negotiation trail.Meaning when & what was discussed to get to the final agreed offer.
2. Pro-forma inclusions of the aquring company as well as rational as to why they are buying & why the agreed price.
3. A shareholders instructions & timelines as to how to accept or decline.
One company I owned was taken over by RioCan. The orriginal offer was recomened by the board as "unacceptable and recomended to be voted down" A few weeks later an imporved offer was made & the BOD recomened acceptance.
Point? At no time will there be a random takeover without shareholder approval & lots of background as to the offer details.
As I detailed above, anything is possible, regarding the "deal"
It does have to meet the approval of both companies.
Meaning, assuming Roche. Their .B.O.D would pre-approve the deal moving forward to the acceptance of Roche shareholders.
Roche shareholders would not vote on the deal. Their BOD would act on thier behalf.Hence the outside 3rd party oppinion.
All of which take a lot of time.
Being a Bioscience opportunity the "evaluations" are open to a lot of speculation & interpretation.
The closer ONC gets to approval, the lower that speculation factor becomes.
Yes, they will use "present market deals" as examples. However, they still need to justify why spending $1 billion, $5 Billion etc etc
Roche is looking at this simply as WITFM
Whats in this for me?