TWTR at $49.64 ----buyout at $54.20 ----- Easy 9% ?

[Overnight]

In an all cash deal such as this presumably is, your shares will be bought by the acquiring entity and replaced with cash in your brokerage account.

So when a public company goes private, you cannot hold onto your shares? You are kicked out of your stock? That's rude.

And if you are kicked out of your shares at a loss, can you sue the shit out of the company for forcing you to take said loss?

 

[ph1l]

So when a public company goes private, you cannot hold onto your shares? You are kicked out of your stock? That's rude.

And if you are kicked out of your shares at a loss, can you sue the shit out of the company for forcing you to take said loss?

Yes, yes, and you can't afford it.
https://public.com/learn/what-happens-to-stock-when-a-company-goes-private

In order to go private, a public company must host a special election for institutional and retail investors to vote on. Any investor who owns voting stock in the company is able to vote, but institutional shareholders tend to hold much larger amounts of stock that represent a larger portion of the vote.

The company proposes something called a “tender offer” for a minimum of 20 days to ensure everyone has a chance to vote. The tender offer is the company’s request to purchase all outstanding (aka sold) shares at a certain value, which is usually higher than the current share price. The SEC defines a tender offer as “a public bid for stockholders to sell their stock.”

Investors can reject the tender offer, but institutional shareholders are more likely to impact the final vote. Companies can take legal action if an investor rejects a tender offer to buy outstanding shares and go private.

 

[Overnight]

Yes, yes, and you can't afford it.
https://public.com/learn/what-happens-to-stock-when-a-company-goes-private

That doesn't exactly answer the question. Let's say I bought TWTR at 100 bux per share some time in the past. Now the company goes private after Elon buys at 54 bux per share.

So...What is my status with my 100 bux per share holdings after I have held those shares past the tender offer expiry date?

 

[Jzwu2017]

When the deal goes through if it does, you will get $54/share in cash. If not you will still have the stocks at whatever the market price.

 

[ph1l]

That doesn't exactly answer the question. Let's say I bought TWTR at 100 bux per share some time in the past. Now the company goes private after Elon buys at 54 bux per share.

So...What is my status with my 100 bux per share holdings after I have held those shares past the tender offer expiry date?

Your status is you are still a ... (not appropriate for a public forum).

You get $54 per share just like if you sold the shares at $54.

 

[TheDawn]

TSLA is down 12% today. If $800 breaks then TSLA will probably fall back to $700, the February low, in a hurry.

If $700 breaks, what are the chances Musk's financing to buy TWTR actually closes?

Probably close to 0%. The fact of the matter is the probability is almost certainly already 0%, and that is exactly why TWTR's board voted to accept Musk's offer, i.e. call his bluff.

The market action in TWTR shares is suggesting, strongly, that traders do not believe Musk will actually succeed in taking TWTR private.

The TWTR board already knows this, and so they called Musk's bluff. A brilliant move because TWTR's stock price is going to continue to fall along with the rest of the market and eventually will decline well below its all time low price of $13.74. The TWTR board did not want to become Yahoo 2.0 by refusing a high offer only to watch as the bids for their stock collapse. Yahoo, in 2008, famously turned down MSFT's $40 Billion offer. 8 years later YHOO sold itself to to VZ for $4.4 Billion.

TWTR's board did not want that same type of mistake pinned on them.

Must will never own TWTR.

They should delist TWTR then; this is a poison pill in disguise, using the public's money. It's just like when a house is sold with both parties having signed off on the real estate purchase agreement, the property would receive no more bidding or offerings. It won't even be allowed to be visited in most cases so why is the twitter stock still being traded? So what if Musk doesn't come through with his financing for the purchase? Is he going to be sued for breach of contract? Or is it going to be like when you can't come up with the financing for the house that you want to buy? Either the seller finds you a mortgage and force you to take it or you walk away from the deal like it never happened?

One should've never backed up loans with equity. That's the tail-wag-the-dog tactics used by those unscrupulous Chinese public companies. Musk has been hanging around the Chinese for too long.

 

[Overnight]

Your status is you are still a ... (not appropriate for a public forum).

You get $54 per share just like if you sold the shares at $54.

What if I am not selling my shares? They just rip them out of my hands?

 

[TheDawn]

That doesn't exactly answer the question. Let's say I bought TWTR at 100 bux per share some time in the past. Now the company goes private after Elon buys at 54 bux per share.

So...What is my status with my 100 bux per share holdings after I have held those shares past the tender offer expiry date?

What do you mean by tender offer expiry date? You mean the date that the deal finally closes and the Musk is the new owner?

If this is what you are asking, your share holding will be 0 because Musk would've bought them and you would've ended up with a loss of (54 - 100) $46 per share.

 

[TheDawn]

What if I am not selling my shares?

You won't be allowed once the deal closes. It's like you won't be allowed to not sell your house once the buyer has bought your house.

They just rip them out of my hands?

Yes. And you won't even feel it cuz it will be just processed electronically.

Why are you all of sudden so naive? You are supposed to be a seasoned futures trader. Is your account hacked?

 

[Overnight]

What do you mean by tender offer expiry date? You mean the date that the deal finally closes and the Musk is the new owner?

If this is what you are asking, your share holding will be 0 because Musk would've bought them and you would've ended up with a loss of (54 - 100) $46 per share.

K, so this means that there is zero chance that TWTR will ever go above $54.20 on the exchange ever again, until it is delisted. I mean, why would it? You are saying that $54.20 is an absolute hard limit up.