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I agree with Mikes comments, but note there are sharks out there who spread false rumors about a possible sale of the company--to drive up the price. If the deal falls through, share price will fall. So consider selling if you think the actual sale is unlikely to go through. Or may run into trouble with antitrust, etc.

Also note that once an offer is made, it can take months for the deal to close. And usually the share price stays close to the offer price. So often its good idea to sell once the offer is firm, unless there is reason to believe a bidding war will increase the price.

Similarly, your shares will often be purchased in a tender offer. If you tender your shares and the offer is oversubscribed, the buyer may eventually pay for only some of your shares and return the others. Rather than wait, it is usually better to sell your shares (especially with todays low commissions) rather than accept the tender and wait for your cash.
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