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 :)
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