Information about take overs needed

[in2uxs]

Can someone answer me this please?

I own a few shares in the cigarette company gallaher – not many say 1000. I’ve never actually owned shares in a company that gets taken over before so my question is this – what actually happens to my shares should gallaher get taken over?

Do I wake up one morning with no shares but a cash settlement of x amount; do I retain 1000 shares but 1000 in the new company; or what lol ....

I should know the answer to this I know.

Please do not laugh at this question ... although I'm sure some of you will.

 

[Jack o'Clubs]

As I understand it, the deal is a cash bid?

If so, then yes, at some point you'd wake up with the cash in your brokerage account. Most small investors would probably sell when the deal is near completion as Gallaher's price should be all but identical to the cash offer price, and that way you don't get caught up in the admin. I'm not familiar with the 'story' but if Gallaher starts trading at a significant discount or premium to the bid level, then that obviously tells you something in itself and you might want to trade to take advantage of it, rather than just waiting to see what happens.

I don't think anyone gets laughed at on here for asking an honest question.

 

[in2uxs]

Thanks Jack.

I've just been googling, and it seems like a done deal at £11.40 a share. I shorted Gallaher's price yesterday as it neared £12.00 a share, and so I've sold them making a tidy profit. Shame that another British company has been sold off though - but that is life I guess.

Will Gallaher now lose its UK listing? Shame if it does - its always been one of my bedrock investments.

 

[Jack o'Clubs]

Will Gallaher now lose its UK listing?

Assuming the deal is completed, yes.