TWTR at $49.64 ----buyout at $54.20 ----- Easy 9% ?

Discussion in 'Stocks' started by OptionsOptionsOptions, Apr 26, 2022.

  1. Overnight

    Overnight

    So when a public company goes private, you cannot hold onto your shares? You are kicked out of your stock? That's rude.

    And if you are kicked out of your shares at a loss, can you sue the shit out of the company for forcing you to take said loss?
     
    #11     Apr 26, 2022
  2. ph1l

    ph1l

    Yes, yes, and you can't afford it.:)
    https://public.com/learn/what-happens-to-stock-when-a-company-goes-private
     
    #12     Apr 26, 2022
    Jzwu2017 likes this.
  3. Overnight

    Overnight

    That doesn't exactly answer the question. Let's say I bought TWTR at 100 bux per share some time in the past. Now the company goes private after Elon buys at 54 bux per share.

    So...What is my status with my 100 bux per share holdings after I have held those shares past the tender offer expiry date?
     
    #13     Apr 26, 2022
  4. Jzwu2017

    Jzwu2017

    When the deal goes through if it does, you will get $54/share in cash. If not you will still have the stocks at whatever the market price.
     
    #14     Apr 26, 2022
  5. ph1l

    ph1l

    Your status is you are still a ... (not appropriate for a public forum:)).

    You get $54 per share just like if you sold the shares at $54.
     
    #15     Apr 26, 2022
    DTB2 and KCalhoun like this.
  6. TheDawn

    TheDawn

    They should delist TWTR then; this is a poison pill in disguise, using the public's money. It's just like when a house is sold with both parties having signed off on the real estate purchase agreement, the property would receive no more bidding or offerings. It won't even be allowed to be visited in most cases so why is the twitter stock still being traded? So what if Musk doesn't come through with his financing for the purchase? Is he going to be sued for breach of contract? Or is it going to be like when you can't come up with the financing for the house that you want to buy? Either the seller finds you a mortgage and force you to take it or you walk away from the deal like it never happened?

    One should've never backed up loans with equity. That's the tail-wag-the-dog tactics used by those unscrupulous Chinese public companies. Musk has been hanging around the Chinese for too long.
     
    Last edited: Apr 26, 2022
    #16     Apr 26, 2022
  7. Overnight

    Overnight

    What if I am not selling my shares? They just rip them out of my hands?
     
    #17     Apr 26, 2022
  8. TheDawn

    TheDawn

    What do you mean by tender offer expiry date? You mean the date that the deal finally closes and the Musk is the new owner?

    If this is what you are asking, your share holding will be 0 because Musk would've bought them and you would've ended up with a loss of (54 - 100) $46 per share.
     
    #18     Apr 26, 2022
  9. TheDawn

    TheDawn

    You won't be allowed once the deal closes. It's like you won't be allowed to not sell your house once the buyer has bought your house.

    Yes. And you won't even feel it cuz it will be just processed electronically.

    Why are you all of sudden so naive? You are supposed to be a seasoned futures trader. Is your account hacked?
     
    #19     Apr 26, 2022
  10. Overnight

    Overnight

    K, so this means that there is zero chance that TWTR will ever go above $54.20 on the exchange ever again, until it is delisted. I mean, why would it? You are saying that $54.20 is an absolute hard limit up.
     
    #20     Apr 26, 2022