Educate me Please: Stanley Tools buying Black and Decker

Discussion in 'Educational Resources' started by PolymathMind, Nov 2, 2009.

  1. Hi,

    I was wondering if someone can please go into details about what exactly would happen when something like this happens (stanley buying black and decker)?
    What would happen to stanley stocks?
    what would happen to black and decker stocks?

    I really want to learn what happens to each of the companies stocks when something like this happens, when will it raise, or lower? And for how long? ETC.

    Please... the more details the better.

    PS- I am brand new to the entire stock thin, 100% newbie.
  2. new$


    go to college bookstore, finance section, and look for something like: "Investment Analysis and Portfolio Management" type of book.
  3. wow, such a wonderful amazing answer... someone please post a real answer.
  4. Banjo


    In terms of simple share valuation the acquiring co. usually takes a hit ,they're spending money and it's always unknown how much they will have to spend to make it work. The acquired co usually gains in share value."Black & Decker shareholders will receive stock valued at $57.57 for each share held, representing a 22 percent premium to Black & Decker shares' closing price." They seem to be calling this a merger, in reality there's no such thing, one always has the upper hand. From the article we see that :"Stanley shareholders will own about 50.5 percent of the combined company, while Black & Decker shareholders will hold a 49.5 percent stake."
    This is actually a great fit if they make it work as the market shares of the respective cos. are separate yet complimentary.