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What to do in a buyout situation.
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My club has owned Lyondel (LYO) forever; and, man, has it ever been good to us. Now, there are one or two concerns making propositions to buy the company. What should we expect? Does one sell before the purchase? Will we get stock in the new company (but I don't think its publicly traded). Will there be taxes to deal with if we receive cash?
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Rank: Advanced Member
Posts: 561
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If the stock is exchanged for cash you won't get stock in the new company.
Yes, the stock will be sold, so you'll have to pay taxes.
This probably is time to start keeping a watch on the price and also be on the lookout for a replacement stock. If you're going to end up with cash in the end, then you'll either sell or you'll be bought out. There's no real difference.
The good news it that if there are a couple of companies bidding on LYO, then the price will go up ... but probably not much higher than the current best offer. If the bidding stalls, the price may decline. Most likely it will hover close to the then best offer price. |
Joe |
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What to do in a buyout situation.
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