CFD Contract During Company Takeover

[tomsii]

Hi All,

First post, apologies if this is something of an amateur question. If I hold a CFD contract on a stock what happens under the situation of a buyout.

Say i hold X contracts at a share price of 10p, then there is a buyout offer of say 20p.

1. if i do not close the position and the company gets bought out at the rate of 20p would the position close at 20p per share?

2. or would i have to close the position prior to the buyout (at the increased price based on the news?)

Thanks in advance

Steve

 

[Spread-Bettor]

Your position will be closed before the company in question gets de-listed.