Payment of Share holder's interest
When one company buys another company for cash, the shareholders of the company being purchased give up their shares in exchange for money. However, there can be a period between the completion of the deal and when shareholders actually receive their money. Many merger agreements provide that shareholders will not receive interest during this period. Should shareholders be paid interest for the time they are waiting to receive their money, or is the current practice fair?
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Mergers & Acquisitions: Should Shareholders Be Compensated for the Time Value of Money Between Closing and Payment?
When one company buys another company for cash, the shareholders of the company being purchased give up their shares in exchange for money. However, there can be a period between the completion of the deal and when shareholders actually receive their money. Many merger agreements provide that shareholders will not receive interest during this period. Should shareholders be paid interest for the time they are waiting to receive their money, or is the current practice fair?
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