Stock on Stock merger when numbers don't add up

Discussion in 'Stock Market Today' started by averied, Jun 19, 2021.

  1. averied

    averied New Member

    Joined:
    Jun 19, 2021
    Messages:
    1
    Likes Received:
    0
    Company A and Company B want to merge

    After merge, company A stock holders want to have between 51.1% and 51.9% of ownership, so company B holders have the rest

    The problem is that Company A only has 1.000 shares Outstanding and company B has 20.000

    Also market price of company A is $4 and company B has market price of $1

    How can the merger be achieved with a stock for stock combination; meaning X shares of company A stock are exchanged for each share of company B stock

    Also for merge to be accepted, company B needs to have a little premium. No cash involved.

    Can this be achieved?. What would be the stock on stock ratio? What alternative solutions are there if the merger MUST take place?
     

Share This Page