How to buyout shareholder's shares in company?

Question

If a shareholder refuses to sell his/her share for a proposed price, what other ways can we persuade the buyout? Assuming I'm the majority shareholder.

Answer 1

Offer a higher price.

Have a rights issue if yo don't think he will subscribe, thereby diluting his holding.

Otherwise there is no way you can force him to sell.

Answer 2

find a lawyer and have them act as an agent with an undisclosed principal. This way they dont know it is you buying up the shares from them. It can be difficult to get the shares out of their hands.

Walt Disney used this tactic to buy up all the worthless swamp land in orlando that he used to make disney world-- If people had known they were dealing with disney and that he was buying so much land-- they would have bancrupted him with huge demands.

my question is good:

http://answers.yahoo.com/question/index;...

Answer 3

If you have 90 percent of the company you can force the rest of the shareholders out.  Otherwise you have to buy them out.  Or you could dilute their position.