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Apple's AuthenTec buy already being investigated for class-action suit - Page 2

post #41 of 46
Quote:
Originally Posted by SpamSandwich View Post

 

Technically, most companies would "shop around" their company to make certain they were getting the best return on the sale of their company, but I suppose if the premium was high enough, as it appears to be in this case, there may be less of an argument to be made.

 

 And whos to say that they didn't shop around? I doubt they could do better than Apple. Apple has the cash to actually paid in real money.

post #42 of 46
Do the shareholders have to sell their shares if the company's management decides to sell at a certain price under US law? Just asking because that would work here quite differently...
post #43 of 46
Quote:
Originally Posted by Philotech View Post

Do the shareholders have to sell their shares if the company's management decides to sell at a certain price under US law? Just asking because that would work here quite differently...

In short, yes. It's not quite as simple as forcing them to sell, but the old shares no longer trade.

http://www.ehow.com/how_6905022_sell-stock-sold-company.html
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #44 of 46
Quote:
Originally Posted by melgross View Post

Usually, there's about a 30% premium, so the price here is a very good one for them.
There are intangibles, such as goodwill involved. Also, why would a company be willing to sell if there was no premium?

It's not common, but there are reasons why a company might decide to sell even at market price (without a premium).

For example:
- Shareholders might be concerned that their shares might decline
- Primary shareholder(s) might wish to get out of that business for retirement or to diversify or to use their money elsewhere
- Shareholders might receive shares in the acquiring company which they might perceive as more valuable (even if the market does not)
- Shareholders see synergy between the two companies that makes the merged company more valuable than either component
- True merger of equals rather than acquisition (for example, the United/Continental merger did not involve a significant premium)
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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post #45 of 46
Quote:
Originally Posted by jragosta View Post

In short, yes. It's not quite as simple as forcing them to sell, but the old shares no longer trade.
http://www.ehow.com/how_6905022_sell-stock-sold-company.html

Quote:
Originally Posted by jragosta View Post

It's not common, but there are reasons why a company might decide to sell even at market price (without a premium).
For example:
- Shareholders might be concerned that their shares might decline
- Primary shareholder(s) might wish to get out of that business for retirement or to diversify or to use their money elsewhere
- Shareholders might receive shares in the acquiring company which they might perceive as more valuable (even if the market does not)
- Shareholders see synergy between the two companies that makes the merged company more valuable than either component
- True merger of equals rather than acquisition (for example, the United/Continental merger did not involve a significant premium)

As far as selling shares goes, it's not really selling shares, as they receive new shares automatically. As the old shares are delisted, they don't exist anymore. But people may still hold ont o their old shares—if they have paper shares in hand. If not, then they're out of luck.

I bought one share of Pixar before they were bought by Disney just as a keepsake, in a frame. Disney kept after me to exchange that share for one of their own, but eventually gave up. Since the share was worth nothing, I received Disney shares for it. I think there were two and change, but I d t remember exactly right now. They're in one of my accounts.

There are several reasons why a company may be bought out by another, and that will determine how much it will go for. We've been assuming that it's a successful company that being bought. In that case shareholders aren't worried about their shared declining, so the company will go for a premium.

But if the company isn't doing that well, and is being bought out at distress pricing, then no premium might be offered, because the stock price is declining. That's still somewhat unusual, as there's almost always some premium.

As for the merger of equals, well, they call it that, but there is never a merger of equals. One is always pre-eminent. I can think of several offhand that we're called that but weren't.
post #46 of 46
Quote:
Originally Posted by msimpson View Post

Geez, lawyers. I wonder how many of them dream every night about suing Apple and its big cash hoard.  

 

It would be nice if we had a law that for every frivolous case a lawyer files, and loses, they get an appendage cut off.  A hand or a foot to start.  

They should be forced to work for free for a year for each frivolous case filed. That would be way more painful to them :D

Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

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