What happens after acquisition?

[viciam]

Hi guys,

I was wondering if you might be able to help me please?

I bought shares for a company called FEI Company in 2014 at $74USD per share and have held it since then. Today there was an announcement that the company will be sold at $107.50USD per share.

I am happy with this and don't mind selling the shares at this price, which they are now trading at after jumping 14% since yesterday. Just for education purposes, what actually happens if I don't sell? Will the shares be automatically sold once the acquisition takes place? What if I never want to sell the shares? Will they be converted into the buying company shares?

Any input will be valuable. Many thanks in advance.

 

[cynic]

Re: What happens after acquisition

Hi guys,

I was wondering if you might be able to help me please?

I bought shares for a company called FEI Company in 2014 at $74USD per share and have held it since then. Today there was an announcement that the company will be sold at $107.50USD per share.

I am happy with this and don't mind selling the shares at this price, which they are now trading at after jumping 14% since yesterday. Just for education purposes, what actually happens if I don't sell? Will the shares be automatically sold once the acquisition takes place? What if I never want to sell the shares? Will they be converted into the buying company shares?

Any input will be valuable. Many thanks in advance.

I have had this experience several times with other companies. The outcome was different, almost every time. On one occasion, I received a number of shares in the buying company. On another, my shares were forcibly sold to the buying company and I received cash payment. On yet another, my shares were cancelled and I was compensated with a combination of cash and shares in the buying company. On all occasions, I did receive advance written advice of the acquisition and the manner in which shareholders were to be recompensed.

Hopefully, you'll receive similar information in due course. In the meantime, it might be worthwhile for you to direct some enquiries seeking confirmation of the manner and timing of compensation for your shares by the buying company.