Acquisition - what happens to stock? [duplicate]What happens to my stock when a company I invested in gets bought by another company?What typically happens to unvested stock during an acquisition?What happens to my position if I hold some stocks of a company that gets acquired?What happens to an options contract during an all stock acquisition?Why is AT&T's stock price declining, during the days that they announced the acquisition of Time Warner inc.?What happens to my stock when a company I invested in gets bought by another company?What affects bond value after an acquisition?Selling options on acquisitionAcquisition Stock Holder ApprovalRed Hat acquired by IBMForced buyout - practice and major + / - for minority shareholders in USA
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Acquisition - what happens to stock? [duplicate]
What happens to my stock when a company I invested in gets bought by another company?What typically happens to unvested stock during an acquisition?What happens to my position if I hold some stocks of a company that gets acquired?What happens to an options contract during an all stock acquisition?Why is AT&T's stock price declining, during the days that they announced the acquisition of Time Warner inc.?What happens to my stock when a company I invested in gets bought by another company?What affects bond value after an acquisition?Selling options on acquisitionAcquisition Stock Holder ApprovalRed Hat acquired by IBMForced buyout - practice and major + / - for minority shareholders in USA
This question already has an answer here:
What happens to my stock when a company I invested in gets bought by another company?
1 answer
It was announced in October of 2018, that IBM will acquire Red Hat (RHT) for 190 per share. I have shares of RHT. Current price is in the 180 range. What will happen next?
Will my shares be converted to IBM shares? If so, where can I locate the conversion factor? If not, will I eventually "force sell" at 190? Is there any risk to sitting on the shares, or could it potentially fall apart, falling in price, and I should consider selling now?
stocks corporate-acquisition
asked 17 hours ago
djdydjdy
1685
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djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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marked as duplicate by Dheer, Nathan L, Rupert Morrish, JoeTaxpayer♦ 7 hours ago
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
add a comment |
This question already has an answer here:
What happens to my stock when a company I invested in gets bought by another company?
1 answer
It was announced in October of 2018, that IBM will acquire Red Hat (RHT) for 190 per share. I have shares of RHT. Current price is in the 180 range. What will happen next?
Will my shares be converted to IBM shares? If so, where can I locate the conversion factor? If not, will I eventually "force sell" at 190? Is there any risk to sitting on the shares, or could it potentially fall apart, falling in price, and I should consider selling now?
stocks corporate-acquisition
asked 17 hours ago
djdydjdy
1685
New contributor
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
marked as duplicate by Dheer, Nathan L, Rupert Morrish, JoeTaxpayer♦ 7 hours ago
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
add a comment |
This question already has an answer here:
What happens to my stock when a company I invested in gets bought by another company?
1 answer
It was announced in October of 2018, that IBM will acquire Red Hat (RHT) for 190 per share. I have shares of RHT. Current price is in the 180 range. What will happen next?
Will my shares be converted to IBM shares? If so, where can I locate the conversion factor? If not, will I eventually "force sell" at 190? Is there any risk to sitting on the shares, or could it potentially fall apart, falling in price, and I should consider selling now?
stocks corporate-acquisition
asked 17 hours ago
djdydjdy
1685
New contributor
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This question already has an answer here:
What happens to my stock when a company I invested in gets bought by another company?
1 answer
It was announced in October of 2018, that IBM will acquire Red Hat (RHT) for 190 per share. I have shares of RHT. Current price is in the 180 range. What will happen next?
Will my shares be converted to IBM shares? If so, where can I locate the conversion factor? If not, will I eventually "force sell" at 190? Is there any risk to sitting on the shares, or could it potentially fall apart, falling in price, and I should consider selling now?
This question already has an answer here:
What happens to my stock when a company I invested in gets bought by another company?
1 answer
stocks corporate-acquisition
stocks corporate-acquisition
asked 17 hours ago
djdydjdy
1685
New contributor
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 17 hours ago
djdydjdy
1685
New contributor
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 17 hours ago
djdydjdy
1685
New contributor
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 17 hours ago
djdydjdy
1685
asked 17 hours ago
djdydjdy
1685
1685
New contributor
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
djdy is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
marked as duplicate by Dheer, Nathan L, Rupert Morrish, JoeTaxpayer♦ 7 hours ago
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
marked as duplicate by Dheer, Nathan L, Rupert Morrish, JoeTaxpayer♦ 7 hours ago
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
add a comment |
add a comment |
1 Answer
1
active
oldest
votes
Yes, it was announced in October of 2018, that IBM will acquire Red Hat (RHT) for $190 per share.
In January, Red Hat shareholders "approved the adoption of the agreement and plan of merger, dated as of October 28, 2018".
IBM expects to close the deal in the latter half of 2019.
You can sell for approximately $182 now or you can wait and receive $190 per share in cash when the deal goes through.
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
So if a person keep sitting on the shares, the shares will be force sold? And eventually, one day person will get 190 usd on the one's deposit?
– Michel_T.
17 hours ago
6
On the day that the deal is consummated, the shares will disappear from your brokerage account and $190 in cash will replace it.
– Bob Baerker
16 hours ago
8
I'll add that, in general, there remains a small risk that a deal doesn't go through, even if both companies involved in a merger approved a deal and both anticipate it would close by some time frame. Sometimes deals are not approved by regulators, or other stuff happens which could cause a deal to be cancelled. This risk is why there is often a not so insignificant gap between the current price of a company to be acquired and the agreed upon cash deal price. The time value of money only explains part of such a gap.
– Chris W. Rea
16 hours ago
@Michel_T. If you actually have the Red Hat share certificates in hand, you are responsible for handling the conversion. That's usually done by sending them to some address, and you'll get IBM certificates back. Strictly speaking, if all you want to do is hang on to them, you don't have to convert them immediately. You can hold on to the Red Hat shares for years and as long as IBM exists, you can convert them into IBM shares. I wouldn't recommend that, but just know that you don't have to act immediately. You will have to convert them to sell them.
– Mohair
7 hours ago
@mohair - It's an all cash deal
– Bob Baerker
6 hours ago
add a comment |
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
Yes, it was announced in October of 2018, that IBM will acquire Red Hat (RHT) for $190 per share.
In January, Red Hat shareholders "approved the adoption of the agreement and plan of merger, dated as of October 28, 2018".
IBM expects to close the deal in the latter half of 2019.
You can sell for approximately $182 now or you can wait and receive $190 per share in cash when the deal goes through.
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
So if a person keep sitting on the shares, the shares will be force sold? And eventually, one day person will get 190 usd on the one's deposit?
– Michel_T.
17 hours ago
6
On the day that the deal is consummated, the shares will disappear from your brokerage account and $190 in cash will replace it.
– Bob Baerker
16 hours ago
8
I'll add that, in general, there remains a small risk that a deal doesn't go through, even if both companies involved in a merger approved a deal and both anticipate it would close by some time frame. Sometimes deals are not approved by regulators, or other stuff happens which could cause a deal to be cancelled. This risk is why there is often a not so insignificant gap between the current price of a company to be acquired and the agreed upon cash deal price. The time value of money only explains part of such a gap.
– Chris W. Rea
16 hours ago
@Michel_T. If you actually have the Red Hat share certificates in hand, you are responsible for handling the conversion. That's usually done by sending them to some address, and you'll get IBM certificates back. Strictly speaking, if all you want to do is hang on to them, you don't have to convert them immediately. You can hold on to the Red Hat shares for years and as long as IBM exists, you can convert them into IBM shares. I wouldn't recommend that, but just know that you don't have to act immediately. You will have to convert them to sell them.
– Mohair
7 hours ago
@mohair - It's an all cash deal
– Bob Baerker
6 hours ago
add a comment |
Yes, it was announced in October of 2018, that IBM will acquire Red Hat (RHT) for $190 per share.
In January, Red Hat shareholders "approved the adoption of the agreement and plan of merger, dated as of October 28, 2018".
IBM expects to close the deal in the latter half of 2019.
You can sell for approximately $182 now or you can wait and receive $190 per share in cash when the deal goes through.
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
So if a person keep sitting on the shares, the shares will be force sold? And eventually, one day person will get 190 usd on the one's deposit?
– Michel_T.
17 hours ago
6
On the day that the deal is consummated, the shares will disappear from your brokerage account and $190 in cash will replace it.
– Bob Baerker
16 hours ago
8
I'll add that, in general, there remains a small risk that a deal doesn't go through, even if both companies involved in a merger approved a deal and both anticipate it would close by some time frame. Sometimes deals are not approved by regulators, or other stuff happens which could cause a deal to be cancelled. This risk is why there is often a not so insignificant gap between the current price of a company to be acquired and the agreed upon cash deal price. The time value of money only explains part of such a gap.
– Chris W. Rea
16 hours ago
@Michel_T. If you actually have the Red Hat share certificates in hand, you are responsible for handling the conversion. That's usually done by sending them to some address, and you'll get IBM certificates back. Strictly speaking, if all you want to do is hang on to them, you don't have to convert them immediately. You can hold on to the Red Hat shares for years and as long as IBM exists, you can convert them into IBM shares. I wouldn't recommend that, but just know that you don't have to act immediately. You will have to convert them to sell them.
– Mohair
7 hours ago
@mohair - It's an all cash deal
– Bob Baerker
6 hours ago
add a comment |
Yes, it was announced in October of 2018, that IBM will acquire Red Hat (RHT) for $190 per share.
In January, Red Hat shareholders "approved the adoption of the agreement and plan of merger, dated as of October 28, 2018".
IBM expects to close the deal in the latter half of 2019.
You can sell for approximately $182 now or you can wait and receive $190 per share in cash when the deal goes through.
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
Yes, it was announced in October of 2018, that IBM will acquire Red Hat (RHT) for $190 per share.
In January, Red Hat shareholders "approved the adoption of the agreement and plan of merger, dated as of October 28, 2018".
IBM expects to close the deal in the latter half of 2019.
You can sell for approximately $182 now or you can wait and receive $190 per share in cash when the deal goes through.
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
answered 17 hours ago
Bob BaerkerBob Baerker
18k12754
18k12754
So if a person keep sitting on the shares, the shares will be force sold? And eventually, one day person will get 190 usd on the one's deposit?
– Michel_T.
17 hours ago
6
On the day that the deal is consummated, the shares will disappear from your brokerage account and $190 in cash will replace it.
– Bob Baerker
16 hours ago
8
I'll add that, in general, there remains a small risk that a deal doesn't go through, even if both companies involved in a merger approved a deal and both anticipate it would close by some time frame. Sometimes deals are not approved by regulators, or other stuff happens which could cause a deal to be cancelled. This risk is why there is often a not so insignificant gap between the current price of a company to be acquired and the agreed upon cash deal price. The time value of money only explains part of such a gap.
– Chris W. Rea
16 hours ago
@Michel_T. If you actually have the Red Hat share certificates in hand, you are responsible for handling the conversion. That's usually done by sending them to some address, and you'll get IBM certificates back. Strictly speaking, if all you want to do is hang on to them, you don't have to convert them immediately. You can hold on to the Red Hat shares for years and as long as IBM exists, you can convert them into IBM shares. I wouldn't recommend that, but just know that you don't have to act immediately. You will have to convert them to sell them.
– Mohair
7 hours ago
@mohair - It's an all cash deal
– Bob Baerker
6 hours ago
add a comment |
So if a person keep sitting on the shares, the shares will be force sold? And eventually, one day person will get 190 usd on the one's deposit?
– Michel_T.
17 hours ago
6
On the day that the deal is consummated, the shares will disappear from your brokerage account and $190 in cash will replace it.
– Bob Baerker
16 hours ago
8
I'll add that, in general, there remains a small risk that a deal doesn't go through, even if both companies involved in a merger approved a deal and both anticipate it would close by some time frame. Sometimes deals are not approved by regulators, or other stuff happens which could cause a deal to be cancelled. This risk is why there is often a not so insignificant gap between the current price of a company to be acquired and the agreed upon cash deal price. The time value of money only explains part of such a gap.
– Chris W. Rea
16 hours ago
@Michel_T. If you actually have the Red Hat share certificates in hand, you are responsible for handling the conversion. That's usually done by sending them to some address, and you'll get IBM certificates back. Strictly speaking, if all you want to do is hang on to them, you don't have to convert them immediately. You can hold on to the Red Hat shares for years and as long as IBM exists, you can convert them into IBM shares. I wouldn't recommend that, but just know that you don't have to act immediately. You will have to convert them to sell them.
– Mohair
7 hours ago
@mohair - It's an all cash deal
– Bob Baerker
6 hours ago
So if a person keep sitting on the shares, the shares will be force sold? And eventually, one day person will get 190 usd on the one's deposit?
– Michel_T.
17 hours ago
So if a person keep sitting on the shares, the shares will be force sold? And eventually, one day person will get 190 usd on the one's deposit?
– Michel_T.
17 hours ago
6
6
On the day that the deal is consummated, the shares will disappear from your brokerage account and $190 in cash will replace it.
– Bob Baerker
16 hours ago
On the day that the deal is consummated, the shares will disappear from your brokerage account and $190 in cash will replace it.
– Bob Baerker
16 hours ago
8
8
I'll add that, in general, there remains a small risk that a deal doesn't go through, even if both companies involved in a merger approved a deal and both anticipate it would close by some time frame. Sometimes deals are not approved by regulators, or other stuff happens which could cause a deal to be cancelled. This risk is why there is often a not so insignificant gap between the current price of a company to be acquired and the agreed upon cash deal price. The time value of money only explains part of such a gap.
– Chris W. Rea
16 hours ago
I'll add that, in general, there remains a small risk that a deal doesn't go through, even if both companies involved in a merger approved a deal and both anticipate it would close by some time frame. Sometimes deals are not approved by regulators, or other stuff happens which could cause a deal to be cancelled. This risk is why there is often a not so insignificant gap between the current price of a company to be acquired and the agreed upon cash deal price. The time value of money only explains part of such a gap.
– Chris W. Rea
16 hours ago
@Michel_T. If you actually have the Red Hat share certificates in hand, you are responsible for handling the conversion. That's usually done by sending them to some address, and you'll get IBM certificates back. Strictly speaking, if all you want to do is hang on to them, you don't have to convert them immediately. You can hold on to the Red Hat shares for years and as long as IBM exists, you can convert them into IBM shares. I wouldn't recommend that, but just know that you don't have to act immediately. You will have to convert them to sell them.
– Mohair
7 hours ago
@Michel_T. If you actually have the Red Hat share certificates in hand, you are responsible for handling the conversion. That's usually done by sending them to some address, and you'll get IBM certificates back. Strictly speaking, if all you want to do is hang on to them, you don't have to convert them immediately. You can hold on to the Red Hat shares for years and as long as IBM exists, you can convert them into IBM shares. I wouldn't recommend that, but just know that you don't have to act immediately. You will have to convert them to sell them.
– Mohair
7 hours ago
@mohair - It's an all cash deal
– Bob Baerker
6 hours ago
@mohair - It's an all cash deal
– Bob Baerker
6 hours ago
add a comment |
