SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Madharry who wrote (8615)10/12/1999 1:30:00 PM
From: JRH  Read Replies (3) of 78717
 
I have a question for you guys. I have received info that a now public company is attempting to go private. Their stock price has been in a precipitous decline because of recent losses due to expansion. Insiders own at least 45% of the company.

My question is, what determines the buyout price if it does indeed go private? Is it a vote of shareholders, and thus if insiders own over 50% they essentially have say in what the buyout price is?

What happens if you feel the business is trading at < 50 cents on the dollar, you buy a small number of shares and hold out for what you feel is a reasonable price?

Is your fate determined by whether the owners have less than or greater than 50% of the company?

Thanks for your help.

-rth
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext