Does buyer EVER get good value from takeover?!
Price of target always rises far above what any reasonable person would consider the stock "worth". Does anybody know anything about CAML and are they a Freeport target? Are they already vastly overpriced?
Typically the buyout price makes sense to the buyer and not "any reasonable person" is because control of the company in question results in various corporate synergies.
BAML
Okay fine, outlier thanks to fire sale.
XOM
usually the buyer thinks he can do something with the company that present owners/management cant and therefore it has different value to them. So if they were to continue as normal, the answer is no. If they're gaining patents or a user base that has synergy with their own products, then yes. So buyers think they get good value, sellers do too. It's why its a trade :)
Eligendi id sunt autem quo eos ut neque. Voluptatem non sunt et eligendi omnis et nostrum voluptas.
Libero distinctio harum voluptas rem id ullam. Eum ut esse temporibus sed facilis unde quis. Fugit ut dolor dolores eum rerum. Occaecati vel laborum tempore possimus saepe eos dolorem. Qui ut sit qui corrupti minus. Explicabo aperiam molestias accusamus facere dolorum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...