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To: Money Mood who wrote (30236)	4/11/1999 11:14:00 AM
From: Captain Jack	Respond to of 31646

Vik--- There are GENERALLY two ways a company is bought out. Most commonly it is with shares of the buying compant. If Co. A valued at 50 buys Co B at 10 the total cost if formulated to the amount of shares outstanding at Co A. Then you receive X amount of shares of CoA. If both had the same amount of shares outstanding this example would provide you with 20% of the amount of shares you held in Co B in Co A stock. Rarely it is a cash buyout where on the settelment date your shares are gone and cash is in your account. More commonly than a cash buyout but less than a share buyout is a mix of the ywo above. Share buyouts are very active when a company feels it is fairly valued and certainly when it feels its shares are overvalued as they are then getting a bargain... Hope that helps--- very general as there is a ton of financial, operational, plus HR problems that must be worked out. One of the biggest being what to do with SR mgmt. If they are great they may wish to keep them and they may or may not wish to go,,, if they are terrible and that is the reason the stock price of the co being bought seems cheap they may wish to be rid of them but they hold out as their future may not be bright,,, then it may be a private firm where the owner wants a position or wishes to retire--- lots of negotiation on many fronts...