Hi! What happens to the stock when one company buys another one!!?? In this case BBV ($17.18) bought GFG ($0.29). I own some GFG.

Posted by Nestilll on August 21, 2009 (07:14PM)

Thank for your help!))

Posted by Nestilll on August 21, 2009 (07:14PM)

*Thanks, LOL

Posted by OldFart on August 21, 2009 (07:30PM)

Every deal is different and this is very new. I guess reading of the fine print is coming on Monday

Posted by JackoTrades on August 21, 2009 (07:43PM)

My understanding is that GFG lost 1.6B in writedowns.  Their equity was at $1B.  Therefore the FDIC will take them over, common shares will get wiped out and the FDIC will (has?) bid it out (reportedly BBVA won).  If this is the case, I think that the FDIC and BBVA split the $600M negative equity.  The only way common shareholders get something is if BBVA or someone else bids over book value for the shares outside of the FDIC.  I don't think there's any way the FDIC will let this bank go on doing business without someone taking them over or a large recapitalization.  This new understanding is what caused me to sell at .35 yesterday at a loss.  But who knows what news Monday will bring?

Posted by JackoTrades on August 22, 2009 (10:38AM)

Looks like it played out just like I thought:
http://www.reuters.com/article/marketsNews/idINN218699320090821?rpc=44

Posted by Nestilll on August 22, 2009 (02:58PM)

Yeah, the bank is gone, GFG owns nothing, probably gonna trade at like 0.00001 on monday LOL. Good I didn't buy a lot

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