[Closed] Random share dealing question.

You'll normally end up with shares in the new company. Depending on the buy-out you may find that the new shares are worth considerably more.

I think it depends on the detail of the take over.

Sometimes you have to sell at the price agreed in the deal or you are given some stock in the new company. I think.

Not at all sure!

Hope that helps!

Ok, thats given me more of an idea of what to do if things go the way i think they will.

Thanks all.

Gobchul has it. Either mandatory buy out of your existing shares or equivalent number/value of new Co. shares.

I think it depends on the detail of the take over.

Very much so. If the bigger company is only buying a controlling share of the other one, then nothing will happen to them (other than price variation) unless you have agreed to sell them to the buyer for them to make up their controlling share. If it is a corporate merger, whereby the previous entity ceases to exist, then the shares will be the subject of a corporate action (usually being exchanged for N shares in the other entity) which will be notified to whoever holds the shares for you and should be relatively transparent.

EDIT - Situation would be a bit different if the buyer is not publicly traded, however.

If it's a private company there's no share dealing as there's no market. The shares are worth nothing until someone is prepared to buy them, so will be the value the other company is prepared to buy them at. Could be peanuts, could be a lot, or anything in between.

Went through this with a buy out. Had shares I'd bought and had a bunch of share options that I'd been given as a bonus. The latter being not actual shares but the option to buy them if I wanted to sell and someone was prepared to buy them. New buyer was prepared to buy them.

Existing company recommended we sold and price offered was good. Wouldn't be getting new shares in the new company, just the cash.

Great. Shares sold, new buyer comes in, and promptly makes half the development department redundant. Though was profitable due to the share sale and redundancy money.

Have had this a couple of times - basically if it's a cash buyout for whole company - unconditional - you get cash or shares (sometimes you can choose, sometimes you can't) for your shares. No dealing fees at least on the transaction.

My two seem to have been whisky related - Macallan-Glenlivet and the SMWS (one quoted, one unquoted).

[ Edit - do you mean they are shares in the company you work for (as above) or are quoted / unquoted shares that you have previously acquired ? ]

I've sort of had the situation of owning shares in a company I don't work for being bought out also. Publically listed.

That was Egg which I got on IPO (stupid thing to do but anyway) and eventually they got bought back by owners Prudential. Option was to sell or exchange for Pru shares, so I took the latter. You just simply get the equivalent value of shares which will be a different number of shares usually due to different price per share. Eventually sold them and I think made crap all money on it since the IPO.

Not a take over but a collapse - GAME shares. I'd originally bought Electronic Boutique shares and they bought GAME retail stores then rebranded as GAME so the EB shares were reissued as GAME but same value. They did well and should have sold them but held on and of course it all went tits up.

Went into administration, shares worthless and then it was bought up. Problem is the shares were written off, so I lost the money.

I've given up dabbling in shares since, other than a shares based ISA that still ticks along making crap all money also.