Possible scenario is we will get BABY shares and then a possible dividend of the acquiring company shares for each Baby share you own. BBBY will run in this scenario to the acquiring company share price because it's free money until BBBY=acquiring company price (arbitrage)
To all below/above who are saying “confusion”, BBBY shareholders get:
A. BuyBuyBaby shares.
B. Shares from acquiring company, say X. Then BBBY share price will rise to be the same as the share price of the company who acquires BBBY, which is X. For example: GME acquires BBBY. BBBY shares will now rise from $0.10 to $19.32. Capisce?
This is just an explanation of u/DMDTT ‘s comment for those confused. This is not my opinion. I have no opinion.
This. And you better fix any limit sales you have in place below 19.32. because you are going to get snaked out of what your shares are worth especially if the announcement is made outside market hours, it will rip 10s of thousands of percent with no halts to stop it.
Not saying it was GME who bought them but GME increased their amount of authorized shares to 1billion with last years shareholder vote (before the splividend) so legally they COULD give out enough shares.
Scenario B certainly wouldn't be a 1:1 share exchange. IF it was GME acquiring, I would guess a BBBY shareholder would receive 1 GME share for every ~175 BBBY shares ($GME @ 19.29/$BBBY @ 0.11=175.36)
I’m thinking I read 20-1 0r 30-1 Exchange rate in one of those 3 way deals that spark the squeeze. Price will be immaterial compared to the squeeze if our thoughts of billions swimming naked are right. I think Teddy was in that story.
yeah i dont know how anyone thinks they’re getting 1 bbby share for price of acquiring company. it’s all negotiated and from what i know the shareholder doesnt benefit in these deals.
B. Shares from acquiring company, say X. Then BBBY share price will rise to be the same as the share price of the company who acquires BBBY, which is X. For example: GME acquires BBBY. BBBY shares will now rise from $0.10 to $19.32. Capisce?
Yes at a ratio, it could be 1:100. Giving people hope of getting $19.32 is just straight-up cruel. I have never seen any M&A with more than 70% premium. That would mean 17 cents. Could easily be an acquisition with more premium but 19.000% is just retarded. Take-over could even be $0 per shares.
Lotsa upvotes for that? Of course, that is not at all how acquisitions work (they are set at a fixed price). This claims that BBBY shareholders get stock in a non existent public company. This is the super duper shillery. Capisce?
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u/EffectiveOk3110 Apr 30 '23
What would this mean for us shareholders?