5 ms·

It's almost certainly going to be all-stock and any takeover will prevent anyone receiving shares from buying puts or shorting stock of the acquirer for the dur

by whatok 6y ago

It's almost certainly going to be all-stock and any takeover will prevent anyone receiving shares from buying puts or shorting stock of the acquirer for the duration of the lockup. If you are an insider buying puts now you could also potentially look at some jail time.

toomuchtodo 6y ago
> If you are an insider buying puts now you could also potentially look at some jail time. Information is public at this point, you might breach a contract if you've got equity but it's not jail time. Assuming recent regulatory actions, even if your actions were egregious, it's likely no jail time, just a large fine and disgorging profits made. Disclaimer: Not a lawyer, not your lawyer.
- whatok 6y ago
  Insider meaning someone who knew about this deal. If you are an insider shorting things before deals are announced, you absolutely can face criminal charges which can include a prison sentence.
  - toomuchtodo 6y ago
    > you absolutely can face criminal charges which can include a prison sentence. You can (the chance is not 0), but the chances are very rare based on recent historical SEC enforcement actions. I'm not advocating for securities fraud, I'm expressing the observation of lax enforcement by the SEC. https://www.sec.gov/files/enforcement-annual-report-2019.pdf https://www.sec.gov/files/enforcement-annual-report-2019.pdf
    - whatok 6y ago
      Have fun taking your chances on that.
      - deleted 6y ago
        [deleted]
- elliekelly 6y ago
  There is definitely material information with respect to this deal that is still not yet public and trading on it, or even appearing to trade on it, would absolutely risk jail time.
  - toomuchtodo 6y ago
    I agree with you in the event you are someone with access to material non-public information. Your average IC outside of legal or finance is unlikely to have such information. My argument is that the potential transaction itself is now public. Obviously, if you have material non-public information, you should not trade on that unless you want to end up in a Matt Levine piece.
harryh 6y ago
It's possible that executive insiders at Grubhub could be prevented from buying puts via a deal contract, but I can't see how members of the general public could possibly be limited by these sorts of deal terms.
nogabebop23 6y ago
It states in the article that it will be all stock. You take all these meal delivery companies, mix in other frothy VC-funded nonsense of uber and somehow end up with a triple-A portfolio made entirely of dog shit.

by whatok 6y ago

toomuchtodo 6y ago

> If you are an insider buying puts now you could also potentially look at some jail time. Information is public at this point, you might breach a contract if you've got equity but it's not jail time. Assuming recent regulatory actions, even if your actions were egregious, it's likely no jail time, just a large fine and disgorging profits made. Disclaimer: Not a lawyer, not your lawyer.

whatok 6y ago
Insider meaning someone who knew about this deal. If you are an insider shorting things before deals are announced, you absolutely can face criminal charges which can include a prison sentence.
- toomuchtodo 6y ago
  > you absolutely can face criminal charges which can include a prison sentence. You can (the chance is not 0), but the chances are very rare based on recent historical SEC enforcement actions. I'm not advocating for securities fraud, I'm expressing the observation of lax enforcement by the SEC. https://www.sec.gov/files/enforcement-annual-report-2019.pdf https://www.sec.gov/files/enforcement-annual-report-2019.pdf
  - whatok 6y ago
    Have fun taking your chances on that.
    - deleted 6y ago
      [deleted]
elliekelly 6y ago
There is definitely material information with respect to this deal that is still not yet public and trading on it, or even appearing to trade on it, would absolutely risk jail time.
- toomuchtodo 6y ago
  I agree with you in the event you are someone with access to material non-public information. Your average IC outside of legal or finance is unlikely to have such information. My argument is that the potential transaction itself is now public. Obviously, if you have material non-public information, you should not trade on that unless you want to end up in a Matt Levine piece.

harryh 6y ago

It's possible that executive insiders at Grubhub could be prevented from buying puts via a deal contract, but I can't see how members of the general public could possibly be limited by these sorts of deal terms.

nogabebop23 6y ago

It states in the article that it will be all stock. You take all these meal delivery companies, mix in other frothy VC-funded nonsense of uber and somehow end up with a triple-A portfolio made entirely of dog shit.