Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Perkins,

Usually the way this works is that you'd get a new stock -- shares of the acquiring company at a conversion rate based on the shares of Vivendi you hold -- and also of course retain your old stock, usually at a modified share price. It all works out to even at the beginning, of course, so following any premium that V shareholders get paid for their entertainment subsidiary, there is no special value loss or gain on that initial distribution. Of course, how those two stocks then do from that point forward is what matters.

Hope that was clear.

Fool on!

David Gardner
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement