correct me if i am wrong, but i believe you mentioned during one of these discussions on insider selling, selling may increase prior to a buyout because then an insider will need to wait a certain amount of time before they can sell again. and this period of time could be lengthy depending on negotiations.
Blankmind,
1. Technically, once material non-public information exists, insider buying or selling is prohibited. Insiders might feel comfortable selling (for liquidity) until a letter of intent is in writing. Before that time, during non-public negotiations, it is anyone's guess. Regardless, once material non-public information exists, no activity is permitted.
2. If a merger were to be announced, insiders could sell during the period between announcement and shareholder approval. However, this would be rather tacky, and a bad sign to shareholders (after all, the insiders want their vote on a deal that is supposed to be good for shareholders).
3. After the merger is final, there is an SEC lock-up period until, I believe, the 8-K is released. (I may be wrong on the end-date of the lock-up period.)
Gary Korn |
