What happens to the stock of a compnay when that company is bought?

[cidley69]

It looks like Suncor is about to buy Petro Canada.

What is going to happen to the value of Petro Canada stock if this happens, will it go up or down?

Or on a generality level, what happens to a company's stock when teh company is bought by another company?

[max_boost]

Well it depends on details of the deal. Petro closed at $29.65 but if Suncor offers them $40 a share, tomorrow you'll see a gap up in Petro's stock to $40. It's wicked if you are holding PCA stock right now. PCA was always an under performer so I never looked at them, I bought Husky instead possibly another under performing stock lol

Look at Nova Chemicals, the stock went from $1.66 to $7 over night after being bought out by Abu Dhabi Firm. I know a guy who sold the stock the Friday before and he was PISSED. Oh well.

[badatusrnames]

Shareholders are bought out...

[roopi]

Well the news states that Suncor will be offering a 30% premium so you can expect Petro's shares to open at about $38.50 - $39.00. Personally I'd sell the shares tommorrow because this isn't going to go through for a while and it could be blocked by the government because there is a rule about owning more than 20% of a former crown corp.

[Canmorite]

Suncor buys all the outstanding shares for whatever their offer price is, if accepted by Petro. If you own them they basically buy them from you for the offer price accepted.

[e36bmw///]

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[e36bmw///]

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[blinkme_210]

Originally posted by e36bmw///
and what does this mean for suncore?

if they spend 15 bil, will the stock go down?

Without getting into too much technicality, Suncor will acquire all the assets and liabilities of Petro Canada measured at fair value, and amortizing any goodwill arising out of the acquisition resulting in a combination of both companies' financial statements.

Suncor is offering $18-billion for 485-million shares outstanding = $37.11/share.

If Suncor successfully acquires Petro Canada, it will make them the second largest oil sands company behind EnCana. This will drive their stock prices up because investors will see that as a good sign.

I've already placed a large order for the morning =) I'm already invested into some oil industry ETFs, so I'll probably make some good coin tomorrow and possibly sell it off before market close.

[kaput]

.

[blinkme_210]

Yep, founded out east.

[mr2mike]

Originally posted by roopi
there is a rule about owning more than 20% of a former crown corp.

GAY!

This is why I don't fill up at Petro Canada. My dad explained how it was a gov't oil company and why he would never fill up at Petro Canada. He'd rather run empty and walk with a gerry can than fill up at a govt oil company.

This was back in the 80s, for all you kids out there.

[jshel101]

Originally posted by Canmorite
Suncor buys all the outstanding shares for whatever their offer price is, if accepted by Petro. If you own them they basically buy them from you for the offer price accepted.
Thats incorrect. This is just a stock deal. Petro-Canada's stock holders will get Suncor shares.

[Kimchee]

this buy out looks like it could start a trend in the oil sands...maybe lookout for ECA or CNQ next?

it'll be interesting to see what happens when i get into work tomorrow!!!....

[TYMSMNY]

Share offering only. If you don't like the proposed merger, you can sell your PCA on the open market.

"Petro-Canada equity holders receive 1.28 shares in the new company for each Petro-Canada share"