smh@mit-eddie.UUCP (Steven M. Haflich) (05/25/84)
Apparently Esmark has accepted the takeover bid from Beatrice Foods after the latter raised "its bid for all of Esmark's common stock from $56 a share to $60." The stock was selling around $44 before the takeover attempts. I happen to hold a moderate number of shares in Esmark (slightly less than 100 shares, bought years ago on advice from a wise uncle, now deceased, who was a broker on Wall St.). Obviously this is a fortunate situation, but I am uncertain exactly what happens next. Am I about to receive an offer for my stock from Beatrice? Will I somehow be required by Esmark to sell my shares? If so, how is the price determined? If I am not now *required* either sell the stock (or trade it for Beatrice), there is still the question whether this is likely a good thing to do. Are not companies often gutted after takeovers in order to pay off the takeover costs? Even if such manipulations don't reduce the paper value of my holdings, the new stock might not show the good performance that Esmark has experienced over the years. I'd appreciate if any net investment gurus could comment or provide advice. (Let me know in return if anyone needs advice on compiler writing or real-time Unix IO. :-) I'll summarize anything interesting. Steve Haflich, MIT {decvax!genrad, ihnp4}!mit-eddie!smh, smh@mit-ems@mit-mc
honey@down.UUCP (05/26/84)
one bit of data (or maybe as many as 4 bits): for 3 or 4 years, intel hung out the low 30's, with the occasional wild swing and subsequent correction. then about a year ago, ibm offered 40 for ~10% of intel; the market immediately reflected that offer, but intel never went beyond the low 40's and is now back in the low 30's. what does this tell us? beats the hell out of me. peter honeyman