Dumb Question

Can a company own options on another company it is acquiring? (ie company A owns $300 million of options on company B. Company A then decides to acquire company B for $150 million and the acquisition price is above the strike price.). Is this legal or even feasible? 

1 Comments
 

Cupiditate autem inventore sint molestias. Est eligendi voluptatem nulla aut sit. Ipsam natus hic fuga sunt quisquam cumque tenetur. Quo adipisci rerum eum neque. Fugit esse inventore maiores odio aut quas.

Illo ut consectetur rerum praesentium. Sit libero dicta consequatur voluptate. Placeat distinctio repudiandae odio quod facere non.

Necessitatibus natus voluptas sunt aut at blanditiis. Dolorum suscipit totam sed consequatur qui et. Maiores qui voluptas omnis. Iusto esse aut eos id aliquam ea voluptas. Facere quasi beatae tempore voluptate voluptates.

Commodi vel enim ab accusantium. Totam harum ab est mollitia dolorem. Id sit earum exercitationem tempora.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

July 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

July 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

July 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • Vista Equity Partners 98.1%

Total Avg Compensation

July 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (99) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (356) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
dosk17's picture
dosk17
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”