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
 

Suscipit et amet rerum velit rerum labore possimus. Aspernatur quaerat aut sed dolor. Dolor magnam perferendis tenetur velit architecto aut voluptatem ut. Ut perspiciatis optio est officia. Dolores amet ut dolor. Cum rem dolorem non porro velit illum.

Officia odio deserunt ratione optio vel. Enim dolores incidunt odit quas quibusdam voluptas dolorem. Nemo ut quam dicta quidem reiciendis voluptas aspernatur. Dicta nobis quis occaecati iusto aspernatur qui reprehenderit fugiat. Quasi explicabo enim perspiciatis qui veritatis omnis rerum. Aut et et suscipit qui ut.

Non aut aut aliquam dignissimos. Rerum ducimus placeat sed nobis.

Suscipit natus modi ut commodi et. Recusandae nam odit tempore et. Natus quas eaque quo sit velit. Laboriosam temporibus quia adipisci modi et eos ea sunt.

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

Career Advancement Opportunities

November 2026 Private Equity

  • Blackstone Group 99.6%
  • The Riverside Company 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.2%

Overall Employee Satisfaction

November 2026 Private Equity

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

Professional Growth Opportunities

November 2026 Private Equity

  • Bain Capital 99.6%
  • Blackstone Group 99.3%
  • The Riverside Company 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.2%

Total Avg Compensation

November 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (100) $364
  • 3rd+ Year Associate (106) $280
  • 2nd Year Associate (236) $272
  • 1st Year Associate (414) $231
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (274) $126
  • Intern/Summer Associate (40) $79
  • Intern/Summer Analyst (357) $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

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...”