Saturday, March 26, 2016

Why is corporate acquisition price always higher than market price?

When a public company A, is bought by another B. A's stock price will usually jump up hugely, since B is usually paying a price higher than the market price. Could somebody explain me, why can't B just buy the shares of A in the public market instead of negotiates a price much higher, if they want to acquire A.



Submitted March 26, 2016 at 09:20AM by kenny8254 http://ift.tt/1Sd3B5S

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