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If I owned shares of a company and that company was aquired by another company, what happens to my stock?

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If I owned shares of a company and that company was aquired by another company, what happens to my stock?

Postby dominique18 » Tue Apr 02, 2013 5:07 pm

I had some stock in Vignette, based out of Austin Texas. The value of the went down tremendously and then the company was purchased by another and the Vignette symbol disappeared. Anyone know what happened to my stock?
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If I owned shares of a company and that company was aquired by another company, what happens to my stock?

Postby hardwin » Tue Apr 02, 2013 5:16 pm

From http://www.opentext.com/2/global/press-release-details.html?id=2233

Pursuant to the terms of the Merger Agreement, each outstanding share of Vignette common stock was converted into the right to receive $8.00 in cash, without interest and 0.1447 shares of Open Text common stock. Open Text will issue approximately 3.45 million shares of its common stock in connection with the Merger. Based on the closing price of $36.84 per share of Open Text common stock on the Nasdaq Global Select Market on July 20, 2009, the last trading day before the closing of the Merger, the aggregate value of the consideration paid in connection with the Merger was approximately $321 million.


You will be happy to know that your Open Text stock has shot up so that it is now worth $63.09/share instead of $36.84 at merger time. You need to contact your broker and tender your Vignette stock if you haven't done so.

Edit: Abovce means if you had 100 shares of Vignette, they will send you $800 plus 14.47 shares of Open Text now worth $912 so about $17.10/share.
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If I owned shares of a company and that company was aquired by another company, what happens to my stock?

Postby devery » Tue Apr 02, 2013 5:18 pm

I'm sure your broker knows, log on and see what you own. Sometimes you'll just be cashed out and own no stock, other times its converted.

Example: 100 shares of ABC company now equal 50 shares of XYZ company.

Example: 100 shares of ABC company for $5 a share, would mean your broker sold your shares and you have $500 in cash now.
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If I owned shares of a company and that company was aquired by another company, what happens to my stock?

Postby tuhin71 » Tue Apr 02, 2013 5:31 pm

That would be determined by the terms of the acquisition. Generally, you surrender your old shares either for shares in the new company, cash or both. You should have been contacted at that time, if the company or your brokerage had a correct address for you.
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If I owned shares of a company and that company was aquired by another company, what happens to my stock?

Postby wamblee » Tue Apr 02, 2013 5:38 pm

yes
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