M&A question

[huab1992]

1) Why when a company buy another company by full cash, for example for $4/share, the aquisted company share price does not reach $4 , for example it reachs $3.8 and stops there ? (I saw this happens many times) 2) if i bought this for $3.8 when will i recieve the $4/share ?

 

[Robert Morse]

Deals can fall through and cost of carrying the stock until the deal is done.

 

[Peter8519]

Usually, it will reach $4. Otherwise, the market is discounting for "something".

 

[SunTrader]

Better ways to make $0.20 than waiting around for a deal to close ... that might not.

 

[murray t turtle]

Better ways to make $0.20 than waiting around for a deal to close ... that might not.

%%
EXACTLY+ some don't close+ many require regulatory approval;
most that do close/ are worth much more than $5.00.
Interesting study ,M+A.........................................

 

[TheDawn]

Usually, it will reach $4. Otherwise, the market is discounting for "something".

Yes like the twitter deal by Elon Musk. Apparently Musk revived the deal to buy the joke of twtr at $54.20 again despite backtracking from it before. I feel bad for Musk. He should've offered lot less.