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Yes. The preferred will get the payout. If there were any holders of debt (which is senior to preferred -- his is why the yield on preferred shares of mega corp
by hkmurakami 11y ago
Yes. The preferred will get the payout. If there were any holders of debt (which is senior to preferred -- his is why the yield on preferred shares of mega corps are higher Than the company's bonds), they will get paid before the preferred.
Execs will renegotiate their compensation contracts with the acquirer and likely have fairly lucrative contracts (often happens to sweeten the deal).
- harlanlewis 11y agoThere may be a carveout in place, providing a modest return that would otherwise be consumed entirely by investors eating first. http://blog.drosenassoc.com/?p=70 http://blog.drosenassoc.com/?p=70
- tacoss 11y agoIt's not so much to "sweeten the deal" as it is to make sure the execs don't flee, leaving the acquirer with an organization that they have no idea how to run.