I can tell you have very little understanding of the usual acquisition mechanism of subsidiaries
In most cases, the final purchase figures are a direct function of the financial performance of the acquired subsidiary over a period of time of one or more years
BS!!!!!!! That's one of your biggest bald face lies yet. It's so preposterous it couldn't even be a lie. It's off the scale of stupidity. Yeah, you buy a company, and then depending on how it does over a few years, then you decide what to give for it. Where in the hell are you from, Barney happy land? I always assumed France, or the French part of Canada, but I doubt even France does business that gimped up.
Could you give me just one example of this type of buyout, because every other one that i've ever heard of goes something like,
Big Company: I want to buy your company.
Lil Company: What'll you give me?
Big Company: 10 times your earnings.
Lil Company: Take off ya hoser, 15 or I walk.(ok so it's not a tech company, lol)
Big Company: Walk then lil dude, your a dime a dozen.
(now we wait. Is the lil company a dime a dozen. Can the big company buy a lil company competitor, is someone else looking to buy lil company)
Time passes....
Big Company: I'll go 11x earnings, but your killing me here.
Lil Company: 13 and we have a deal.
Big Company: 12.5 and i'll do 20% in cash, the rest stock, and you can have 4 tickets at my luxury box for life.
Lil Company: Deal.
Both stocks halt, assuming they both have stocks. PR announcing the takeover and the price. This is generally either an out right cash deal, in the case of CA's buyout of PLAT(did you hit PLAT last week when it fell from 25 to 19 back to 25, in a few minutes, I did, deal got DOJ approval this week, PLAT at 28 15/16-29 range now) or the big company buys the small company in a stock swap, like for instance Thursday when OSI was bought by INF. I know a bit about this since I bought OSI on Wed(https://www.siliconinvestor.com/readmsg.aspx?msgid=9777823) other recent more well known examples of this stock swap phenomenon are YHOO/BCST, YHOO/GCTY, AOL/NSCP, ATHM/XCIT etc. etc.
After the PR is out and the traders can hash out the per share prices, then the specialist, if it's a listed stock, or the market makers on NASDAQ, start getting their sh$t together and figuring where it should open. Today on OSI the buyout wasn't at as high a premium as expected, so everyone dumped and it actually opened lower. A no brainer buying moment, memory tells me this was the way NSCP did as well, when AOL took em out. Or they can open significantly higher, FORE was the last halt I was in before OSI, seems like it opened up about 9 sticks, or 30+%. Generally, internuts not withstanding, the buyer opens down, the buyee up. This is because arbitrage firms long the buyee, short the buyer locking in the difference. So why doesn't the gap close to zero? Risk.
Just because the deal has been announced doesn't mean it will complete. USAI/LCOS for instance. Both groups of shareholder have to approve, and thanks to sue happy jackasses like you Francoise, there's always a class action suit or two that has to be cleared up. Then you have to get government antitrust approval. Then hopefully the deal goes through.
That's the way it's ALWAYS done, always, ever single time.
Now here's the Francoise method.
Big Company: I want to buy your company.
Lil Company: What'll you give me?
Big Company: I don't know, how about we put out a PR saying I bought you. Then depending on how much money you make the next few years, we'll figure out what I should give for ya. How's that sound?
Lil Company: Well I don't know, it sorta seems like despite the fact that i'm the growing profitable company i'll be taking all the risk. But you seem like good people, so yeah ok.
Big Company: (In CM Burns Voice) Excellent. Ok here's how we'll do this. We'll release a press release announcing the deal, but with no numbers, capeche.
Lil Company: Well I never heard of anything like that, but hokay. I trust ya.
Now, do you want to continue to try and teach me about M and A or are you tired of making yourself look stupid?
I really can't believe you posted that. That is just incredibly moronic, even for your standards. I sure hope the flock gets a chance to see that, but hell if they've followed you this far i'm sure they can overlook one more instance of your can I have some Kool Aid Mr. Jones, it's hot here in Jonestown, level stupidity.
Mr. Burns |
