Companies which are taken over.

[Iotrez]

Hi all,

I sometimes hear that company A has just been taken over by company B and that this has increased the share price of company A. Does this always tend to happen? Is it usually worth investing in a company that has just been taken over.

Thanks alot.

 

[bizmanny]

Hi all,

I sometimes hear that company A has just been taken over by company B and that this has increased the share price of company A. Does this always tend to happen? Is it usually worth investing in a company that has just been taken over.

Thanks alot.

Generally yes before take over usually the share value value of the company to be taken over increase in value. But in the long run that might not be the case.