question andalisa or geoff, page-2

Depends on what the takeover company wants to do and whether or not MCL management & shareholders want it to happen (friendly or hostile takeover).



Sometimes companies offer a price/share which they say is what the company is worth and sometimes they may offer a share swap and sometimes some cash and share swap.



Both sides get to put their interpretations of company value to shareholders. The directors may recommend the offer be taken up or recommend the shareholders reject the offer. Ultimately shareholders decide.



If they decide ‘yes’ then the takeover company will purchase those shares which are given up by MCL shareholders for the offer price. Once a certain % of shares has been attained the takeover company can forcibly buy the remaining MCL shares. You then have no choice.



If there is a rumour of a takeover the MCL shares will rise as people start buying and the takeover company starts buying on-market. The share price will reach roughly what the offer is by the takeover company when it becomes public.


this was written in response to your queston robbie