Minority Interest - Urgent

Say, for example, that company A finds company B attractive and wants to buy 49% of it. Would company A just buy 49% of the shares on the stock exchange, or would company A just pay the 49% directly to company B in return for shares at the market value?

How would the transaction exactly take place? Thanks

5 Comments
 
tiger2012

You usually aren't going to see a 49% stake in a publicly traded company. with diversified stakeholders owning the remaining 51% you will effectively have an iron grip on the board and thus control of the company. Float gets railed, liquidity dries up, not so pretty.

There are definitely publicly traded companies with 40%+ individual stakes...

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