scottFL007
 |
I assume you mean before or after the merger is consumated, because, obviously, you wouldn't knowingly be able to do it before the announcement, except by luck.
There's no absolute rule here. I think, normally, theres some benefit to buying before, because there may be a small value increase when the merger takes place. However, you also run the risk of the deal falling apart. So the answer depends on a number of factors:
1. How certain are you of the merger going thru?
2. How much would you value the shares if the merger fell apart?
3. How much of a discount or premium are the shares selling at, compared to the value of the combined company after adjusting for the merger terms?
4. Will the merger change the value of the company in some synergistic way?
Also remember that, if a merger is going thru, you have the option of buying EITHER of the merging companies, not just the one you want. If they other one is selling at a discount to what yours is, you could buy that instead, again, subject to the questions listed above. |
Wide Awake
 |
Well, before, as the stock usually goes up after. Depends on the situation.
But how would you know about a proposed merger unless you had inside information? If you use this info, or alert others to it, you could be breaking the law. |
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