Originally Posted by
ONE GREEN AND HOPING
WHBM.......Curious to know who got that £1 BA gave for BCal. That nice Lord King gave self and many others £12.15 for each of our shares, and treated the event as a merger....up to a point, naturally..
OG&H. Sale for "£1 - plus all the debts" is finance-speak for a merger (which is generally the correct word for a takeover) where the net value of the shares is negligible - or even negative. But it is a financial convention that to be a merger it must be "for a consideration".
You also have to make a judgement that if you don't offer the principal shareholders anything they will go and make a nuisance of themselves with the Monopolies Commission (as it was then), as they then have nothing to lose. Nothing to do with the inherent trading account of the business or its assets.
Did you accept or reject the share offer ? What were they trading for at the time ?