As the title states, I own stock in a company which just announced it would be bought out (merger). A letter of Intent was signed with an offer of double the current price… Since the announcement the price of the stock hasn't budged (despite currently being half of the offer price).
What gives? Is this because the deal hasn't been formalized yet and there is uncertainty if it will go through?
Markets are efficient so there must be a reason. I imagine people would need more context but curious if anybody has had this scenario happen before and might have some insight.
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