Conversion of JAVA stocks After Merger with Oracle

StockApprentice · Dec 16, 2009

I am trying to learn about how mergers/acquisitions work in regard to common stock held by the general public. In particular I'm focusing on Oracle's purchase of Sun Microsystems earlier this year.

Can anyone please explain and point me to resources which outline what happens to the common stock of Sun Microsystems (currently trading under ticker JAVA) after the merger?

If I buy Sun Microsystems stock at the current price of $9.31 per share, what happens to my stock once the deal is finished?

Do I get a paid $9.50 per share?
Are my shares converted to oracle shares somehow?

Any insight would be helpful!

Thanks!

nkhoi · Dec 16, 2009

you will get sun shares based on the conversion ratio.

StockApprentice · Dec 16, 2009

Where can I find information regarding the conversion ratio? My google searches render nothing.

nkhoi · Dec 16, 2009

if will be calculated by the close of the conversion day.

StockApprentice · Dec 16, 2009

Ok... I'm starting to get a better idea.. but where can I find information on this, especially in regard to this particular deal?

Another related question: how will leap options on JAVA be converted?

nkhoi · Dec 16, 2009

option, stock all base on the conversion ratio legally I don't think they can give you any hard number until that day.

DesertTrader · Dec 16, 2009

The Java deal is cash at $9.50. If you don't have a clue, why confuse the issue. This is not the role of a moderator.

StockApprentice · Dec 16, 2009

DesertTrader,

Thanks for your input... the mod wasn't too helpful. Can you provide info on the deal? I don't understand how the hell java is trading at 9.31 if the deal is for cash at 9.50... unless some people don't expect the deal to go through...

telience · Dec 17, 2009

EU is holding it up right now on the mysql concern.

ORCL might not complete if they can't get mysql.

duko · Jan 27, 2010

SANTA CLARA, Calif. April 20, 2009 Sun Microsystems (NASDAQ: JAVA) and Oracle Corporation (NASDAQ: ORCL) announced today they have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun's cash and debt.