The Minimum Bid for a Firm is the current Market Value plus 40%, So if a company is worth $100m, then the Minimum Bid will be $140m. Bids lower than this will not be accepted by the market.<\/p>\n\n\n\n
Every dollar you bid above the current Market Value will be booked as a one-off Expense Item in your Income Statement under Takeover Premiums and Expenses. So if you bid say $150m for a Firm valued at $100m, then you will take a one-off charge of $50m. This may result in short term depression of your share price.<\/p>\n\n\n\n
For example, if Firm A owns Firm B and:
– Firm A has 100 shares with an underlying Share Price of $50
– Firm B has 50 shares with an underlying Share Price of $40<\/p>\n\n\n\n
Firm B’s contribution to Firm A’s Share Price is:
50 Firm B Shares * $40 per share \/ 100 Firm A Shares = $20<\/p>\n\n\n\n
Firm A’s Share Price = Underlying Share Price + Subsidiary Contribution = $50 + $20 = $70<\/p>\n\n\n\n
<\/p>\n\n\n\n
Note: The Market Share Chart report shows Retail market share, not Wholesale.<\/p>\n\n\n\n
Bid Ratio = Takeover Bid \/ Minimum Bid<\/p>\n\n\n\n
Example:
Bid X = $25 million, Minimum Bid for Firm is $10 million, so Bid Ratio = 2.5
Bid Y = $50 million, Minimum Bid for Firm is $25 million, so Bid Ratio = 2.0
In this case, Bid X would be accepted and settled first.
Bid Y would then be settled ONLY if it still complies with the above Securities Commission Rules now that Bid X has been completed.<\/p>\n\n\n\n
Note: If two or more firms make an identical bid for another firm, then the bid from the firm with the highest Market Capitalization will be accepted.<\/p>\n\n\n\n
Example:
Firm A bids $25m for Firm C, Minimum Bid is $10m. Firm A has Market Capitalization of $50m
Firm B bids $25m for Firm C, Minimum Bid is $10m. Firm B has Market Capitalization of $100m
The two bids have an identical Bid Ratio of 2.5. In this case, the bid from Firm B would be accepted and settled as Firm B has a higher Market Capitalization than Firm A. The bid from Firm A would be rejected.<\/p>\n","protected":false},"excerpt":{"rendered":"
Minimum Bids & Takeover Premiums and Expenses The Minimum Bid for a Firm is the current Market Value plus 40%, So if a company is worth $100m, then the Minimum Bid will be $140m. Bids lower than this will not be accepted by the market. Every dollar you bid above…<\/p>\n","protected":false},"author":3,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"ht-kb-category":[55],"ht-kb-tag":[],"class_list":["post-2239","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-mikesbikes-advanced-takeovers"],"_links":{"self":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/2239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb"}],"about":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/comments?post=2239"}],"version-history":[{"count":3,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/2239\/revisions"}],"predecessor-version":[{"id":2273,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb\/2239\/revisions\/2273"}],"wp:attachment":[{"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/media?parent=2239"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-category?post=2239"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.smartsims.com\/support\/wp-json\/wp\/v2\/ht-kb-tag?post=2239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}