Public company going private

Qacer

Platinum Member
Apr 5, 2001
2,722
1
86
What happens to your stock shares when a public company goes private? Do you get part of the investment money back?
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Originally posted by: Qacer
Who decides on the price? Can you make your own price?

I've seen where the shareholder get to vote on the buyback price. Something like a Dutch Auction.
 

NogginBoink

Diamond Member
Feb 17, 2002
5,322
0
0
Originally posted by: Qacer
Who decides on the price? Can you make your own price?

No.

The decision to sell the company requires a shareholder vote. The buyer will propose a price per share and the shareholders vote to approve it or not.
 

senseamp

Lifer
Feb 5, 2006
35,783
6,187
126
The shareholders decide. Usually until they get a certain percentage of shares, they have to buy it at market or convince you to sell at their price. I think if something like 90% agree to sell at the tender price that they are offering, then the remaining holdouts will also have to sell. But generally, they company has to buy it at market price and often times more than that to get a high percentage of shareholders to tender. So a buyout is generally good for shareholders since they get a premium to market price. For example Harrah's now has $84 offer for it to take it private, but is trading at $74 on the stock market. If the offer were to go through, the shareholders would get $10 per share premium over market price today.