If a bid were put in to buy SWN, would the stock price increase?
What would the stock do if SWN filed for bankruptcy? What's the best option to protect the stockholders? What would the stock do in a hostile takeover?
8 replies (most recent on top)
Seems like it would have made more sense to sell before laying off 45%. That seems to be how it usually works. Then the layoffs come after the acquisition.
About 33% of SWN is owned by 5 institutions ... and another group of funds -5/10 own probably another 20 percent. So a takeover is always possible.
If company went bankrupt- shareholder probably 0.00 .....
As to a hostile takeover, i dont think likely , not sure all the particulars- but much harder to do than in the 80's - rules and all..... If a takeover of any sort happened, probably talking at most 30-40 % bump... at most 50% ... IF stock at 8 then maybe 10-12 $ take out.
I do think SWN is positioned for a sale. In effect the are selling 14 % of the company this year via production , with no plans to invest to replace.... unfortunately unless price increases - no mechanism to add back.
Back to the purpose of this website--- i think they will have ot layoff as they produce down -- starting point of another !5 % ..... just a thought
Don't be too harsh on the OP - it's probably one of the SVPs looking for good advice.
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I see what you did there...
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