Why when one company buys another???

Question

Example the news today that inbev is going to buy anheiser for $70 a share...WHy doesnt Bud trade closer then 65?? I would think It would trade alot closer to 70?? why doesnt it?

Answer 1

simply mi friend.... It´s like a bid but you are trading with stocks. And besides if you buy cheaper the company lose value.

Answer 2

because the buyout may be combo of cash/shares

Answer 3

It depends if the buy out is all cash or a combination of cash and shares in the stock of inbev.  Also the original bid was $65/share since the Anheuser Board rejected that bid there is still thinking that even at 70.00 the board my still reject the bid and the sale will not go through.  Hence the price is not jumping to 70 .....yet