Newbie here. If company A wants to acquire company B, does company A have to give company B share? Also, if company A, say for example, gives 20 million shares to acquire B, would this appear as S-8 and the 20 million shares is sold to the market? Or does it come from the authorized outstanding shares from Company A?
Thanks in advance
Posted by VNGNTN1 on :
Not a real expert on buy outs,but I know of several situations 1-Company A can outright offer cash 2-Company A can accumulate company B shares at a beneficial time & price until they own a majority stake in company B. 3-Company B can offer shares of reclaimed stock to treasury (not in OS) to A (possibly preferred) And of course there is all the wrangling of who will be in charge of what. VAN