Tuesday, October 3, 2017

Is there a formula to calculate/estimate the price per share after a merger?

I know that there are several other factors that will ultimately determine the price, but I was wondering if you could use a formula to estimate this before the merger occurs. For example, company x and company y are merging to form company z. Let's say a deal is reached where shareholders of company x will receive .5 shares of company z per share that they hold of company x. Shareholders of company y will receive 2 shares of company z for every share they own in company y. Using current prices for company x and company y, is it possible to estimate what the share price would be for company z? Thank you in advance!



Submitted October 03, 2017 at 12:55PM by dantissimo27 http://ift.tt/2fHSh82

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