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Noob question: how can Microsoft buy LinkedIn given that large parts of it are owned buy random investors who might not want to sell? What happens to someone w
by davidiach 10y ago
Noob question: how can Microsoft buy LinkedIn given that large parts of it are owned buy random investors who might not want to sell?
What happens to someone who, lets say, bought $10k worth of LinkedIn stock two years ago and has no intention to sell. Will that person be forced to sell his stock?
- dragonwriter 10y agoGenerally, the corporation's internal governing documents will specify the rules for sale, but the norm is a majority vote of the shareholders. Those who voted against may have some remedies if the firm was undervalued, but, yes, they can be forced to sell stock.
- shawn-butler 10y agoThe remedies vary but in Delaware these disputes are heard in Delaware's Court of Chancery. You can google for recent judgement in the (re?)purchase of Dell by Michael Dell. Chancellor ruled the stock was underpriced by the terms of the sale but the remedy is available only to those shareholders who sued not all. Appraisal is a bizarre bit of corporate law to say the least.
- rileymat2 10y agoYes, if a majority of the votes from shareholders approve of a sale others will be forced to sell.
- huherto 10y agoFollow up noob question: Do they buy all stock in public hands or just a part? How do they decide he is obligated to sell ?