takeover with no premium, page-16

there is no takeover premium after $2.30

If you buy 5 shares at $2.30 you pay $11.50

You will also get $11.50 from the takeover.

(5 x 1.38) = 6.90
2 shares @ 2.30 each = 4.60

4.60 + 6.90 = 11.50

If you buy above 2.30 you lose money

eg say you buy $2.40
You pay $12 and get $11.70 under the Gilbertson deal
So you will infact lose 30 cents on your five shares.

It's a bit tricky...this one. Be careful.