Originally Posted by
NYTA
Any time the target is public the buyers pay a premium over the traded price to take control. The only exceptions are when a deal leaks and gets bid up by the arbs and then even still it's almost always at a premium to the 30 day average.
NYTA,
That is generally the case for financially sound companies where the acquiring company will attain value to their portfolio by acquiring the target. I do not understand what sort of asset does an airline on the brink of insolvency with a bloated managerial staff, high debt burden, and labor relations issues produce for a venture capital fund for it to pay 38% per share higher than the trading value? In any event, I will be sure to get to the bottom of it =)