Question On Stock Price After Private Equity Buyout

[Leonidas]

Life Time Fitness (LTM) has agreed to be purchased by private equity firms TPG and Leonard Green & Partners L.P., in one of the largest U.S. leveraged buyouts so far this year. The agreed price is $72.10 in cash.

This morning I checked the price and see that the share price is up 5% to 70.65, but since then has been moving up and down a few cents.

I'd like to get the full $72.10 for my shares, but my question is, do I have to wait until the deal actually goes through and get my money then - or will the shares reach 72.10 before that point?

 

[Animorph]

It will take a while, and you may need to wait until the actual purchase date. There is still a small risk that any deal will fall through at the last minute. And of course there is the time value of money, though that's not a giant factor at low interest rates.

 

[Leonidas]

Thanks. That's about what I thought, but I was hoping I wouldn't have to wait until the 3rd quarter for the last bit of gain from the sale.