Mergers and buyouts


What are the different possible outcomes for the shares of two PLC's when one buys the other or when two companies merge?

Example 1

Morrison and Safeway

Example 2

Halifax and Bank of Scotland

Cheers. :rolleyes:

FTSE Beater

Experienced member
Hi Jamest

In my experience it can go either way. It depends on how the market views the takeover. Some shares rise when they announce a take-over and others fall, the main thing the market looks at is what price the company doing the take-over gets - good or bad.

The company that is being taken over though should rise as the market balances the price of the take-over offer with that of the share price.

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