All cash, all stock offer

All cash, all stock offer,

Definition of All cash, all stock offer:

  1. Those shareholders of the company being acquired may see prices of their shares rise, particularly if the company was bought at a premium. Even in cash transactions, a share price is negotiated for the target company, and that price could be well above where it's currently trading. As a result, shareholders of the acquired company may stand to make a sizable capital gain, especially if the combined entity is believed to be a much-improved company than before the acquisition.

  2. Acquisition method in which the acquirer offers to buy all outstanding shares of the target firm for a stated price in cash.

  3. An all cash, all stock offer is a proposal by one company to purchase all of another company's outstanding shares from its shareholders for cash. An all cash, all stock offer is one method by which an acquisition can be completed. In this type of offer, one way for the acquiring company to sweeten the deal and try to get uncertain shareholders to agree to a sale is to offer a premium over the price for which the shares are presently trading.

How to use All cash, all stock offer in a sentence?

  1. The acquired company's shareholders may earn a capital gain if the combined entity realizes cost savings or is a much-improved company.
  2. The acquirer may sweeten the deal to entice the target company's shareholders by offering a premium over its current stock price.
  3. An all cash, all stock offer is a proposal by one company to buy another company's outstanding shares from its shareholders for cash.

Meaning of All cash, all stock offer & All cash, all stock offer Definition