Based on the deal between CPQ and DEC, $30 dollar will be paid by CPQ to DEC's holded for each DEC share plus 0.945 share of CPQ stock. So, the $30 is locked, while the value of that 0.945 CPQ share is not.However the total CPQ shares involved in this deal is fixed. The value of those shares are the value that CPQ is to take out of its company given to DEC holder to buy out the company.
If the deal said the total price is 9.6 billion fixed, then the dollar amount involved is fixed, while the CPQ shares involved will fluctuate according to the market value of CPQ's stock.
When we talk about accounting, we are talking about total dollar amount, not total shares. When you put the numbers on the sides of debt and credit of your book, no one will put the number of shares, it is always dollar amount !!!! Is it clear to you now ? |
