What if Company A owns something that is worth $500M
Company B Owns something that is worth $500M
Company A has a market cap of $100M and 500M shares, 400M issued
Company B is a private co and has 100 employees making $100k/yr and also sells product additional to that $500M something
Company A has 5 employees and sells nothing else, but does retain something else of great value
How does a 50 50 merger between these cos occur?
1-- If you had to give Co B an equal # of shares.. in theory you would have to give them 400M shares.. 100M you have.. would you then have to authorize an additional 300M? What if Co B requested some number less than those 300M shares and that something else of great value? Could that be possible?
2-- Say you got rid of all those shares above, as you stated prev, and made it 400M total 200M/200M.. what would be the effect on our indiv retail share price? would it double or stay the same or..?
Then as prev-Co B sold their shares would prev-Co A retail shareholders experience dilution?
3-- Say Co B is determined from the above info to have more value than Co A... wouldn't it be possible that Co B would simply require something (ie x# shares) of value from Co A in order to make it 50 50?
..
Just trying to get a handle on all this & your thoughts..
thanks very much