What happens when A buys B's asset/product?

[shyguy]

If I have shares in company A and they have a product/asset that is likely to produce big revenue, but then company B comes along (likely a big player) and buys that companies asset/product due to its long term worth... what happens to the value of my share with company A given that they would have most likely sold the asset/product for a massive gain?

 

[tothemax6]

If I have shares in company A and they have a product/asset that is likely to produce big revenue, but then company B comes along (likely a big player) and buys that companies asset/product due to its long term worth... what happens to the value of my share with company A given that they would have most likely sold the asset/product for a massive gain?

Wouldn't Company B have to buy your shares in Company A to do that? In which case its whatever B pays for your shares.

 

[pixel]

Wouldn't Company B have to buy your shares in Company A to do that? In which case its whatever B pays for your shares.

google "takeover"
or look it up at asx.com.au

Company B cannot simply force company A to sell its assets to it; in a takeover, independent valuers must provide a founded opinion that the takeover price is "fair and reasonable"; were the directors of A to accept anything less without shareholder approval, they'd be neglecting their duties as directors - and ASIC might even be able to obtain a court order and/or conviction against t hem.

 

[burglar]

If I have shares in company A and they have a product/asset that is likely to produce big revenue, but then company B comes along (likely a big player) and buys that companies asset/product due to its long term worth... what happens to the value of my share with company A given that they would have most likely sold the asset/product for a massive gain?

If company A freely sells for a massive gain, then it would appear on the books. i.e. there would be revenue from sale or pay down of debt or something tangible which would offset the loss of the asset.