How does a share issue by Company A to Company B affect co.A's share price? Co.B will be taking company A over? eg. Co.A is trading at $1.60. The board's approved (& shareholders will follow) to issue new shares to Co.B at a set price of $2.30 per share. This will give Co.B a 51% controlling stake in Co.A. & in turn, Co.A will get rid of it's debt problems. Question; What should happen to the share price once the issue is finalised? What share price should be expected?
