Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hi all,can you please explain what happens in the buyout process?on the news release it is as follows, "Tyco International Ltd. (TYC;) and TyCom Ltd. (TCM;) announced today that they have executed a definitive agreement whereby a subsidiary of Tyco and TyCom will amalgamate and each outstanding common share of TyCom not owned by Tyco will be converted into the right to receive 0.3133 of a Tyco common share, an increase from the previously announced offer of 0.2997 exchange ratio. Based on the closing price on the New York Stock Exchange of a Tyco common share on October 18, 2001, this represents a value of $15.42 per TyCom common share."
Also, "The transaction is expected to be consummated early next calendar year following approval by TyCom's shareholders."
Sooo,what happens between now and then if TYCO share price jumped to say $60 before they announce a closing date?? PK<< wrote above,"All of your TCM stock will be converted to TYC stock with a buy price of 15.42".I gathered from reading the news release that if the price of a TYCO share was say $60 at the time a date was announced that i would recieve .3133 of a tyco share ($18.80) based on that price? not {15.42} please educate me??
Print the post  

Announcements

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.
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.