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As the owners of SkyMall, how would you cash out on this deal? As I understand it, Xhibit didn't pay cash for SkyMall. I take this to be a stock-for-stock merge
by jarrett 13y ago
As the owners of SkyMall, how would you cash out on this deal? As I understand it, Xhibit didn't pay cash for SkyMall. I take this to be a stock-for-stock merger. So the owners of SkyMall end up with a stake in Xhibit but not cash.
You might argue that the SkyMall people could sell their stock now. But if Xhibit is as much of s sham as the authors say, then it's going to be hard or impossible to cash out at a good price. Once you start selling the shares of an artificially inflated company, the price falls fast. You might unload a few at a high price, but just a few.