- Joined
- Oct 13, 2010
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- 10,766
I bought FRSH about a month ago and it got a buyout offer which was announced 4/10. These things are really complicated looking when looking at the documentation they post about them, but I think it's pretty simple...they ask you if you want to sell your shares for a fixed price (they're offering $6.45), and if they get enough people that want to sell (I guess it's half of the outstanding shares), then the deal goes through and the people who didn't offer to sell their shares still get the same $6.45.
My question is, what's the advantage of offering my piddling amount of shares? It seems like these deals always go through, and I get the same money as if I'd offered the shares. And it looks like there's the option to sweeten the deal (but I don't know if that happens much).
One could argue that I might as well offer my shares, take my money and put it into something else since the price of this stock is "stuck" at around $6.45 until the cash comes into my account, without chance of going up any more. But the buyers have tipped their hand and they must think it's worth more than $6.45 in the long-term, or couldn't make money buying it for that.
Just wondering if there are any bits of wisdom on the options open to holders of buyout shares.
My question is, what's the advantage of offering my piddling amount of shares? It seems like these deals always go through, and I get the same money as if I'd offered the shares. And it looks like there's the option to sweeten the deal (but I don't know if that happens much).
One could argue that I might as well offer my shares, take my money and put it into something else since the price of this stock is "stuck" at around $6.45 until the cash comes into my account, without chance of going up any more. But the buyers have tipped their hand and they must think it's worth more than $6.45 in the long-term, or couldn't make money buying it for that.
Just wondering if there are any bits of wisdom on the options open to holders of buyout shares.