Since acquisition is not closed even after one year of anouncement, what will happen to the valuation. Let's say
If JNPR makes $1B extra in cash by any its investments before acquistion closes, will HPE returns this to the shareholders? How existing SHs benefit from the positive cash flow?
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Say it correctly. You get nothing! You lose! Good day sir!
The premium more than likely anticipated future earnings growth for the year or so it would take for the deal to close.
HPE could theoretically up the share price but they are under no obligation to do so unless there were specific clauses put into the deal itself. Since no one has heard of any such clauses I would say it’s a hard “you get nothing ”.
HPE Agreed for $40 a year back. I am asking a hypothetical question where JNPR really excels its finance position before acquisition closes?
The existing shareholders benefit because HPE is paying 40 dollars per share. You don’t really think the share price would be 38 now otherwise, do you? It sat around $25 for years and is basically a dividend stock.