Yesterday we told you that Goodrich is going to be purchased by United Tecnologies for $127.50 per share CASH. The word CASH is key, meaning that is the price you will get paid if you own the stock on the date that the buyout actually occurs.
The stock is trading at 121.93 as I write this. So, the questions are:
1. Will the buyout definitely happen??? Answer: In the agreement, United Technologies agreed to pay a breakup fee of $500 Million if they back away from the deal.
2. How long would I need to hold the stock before the buyout occurs??? Answer: It was announced that the deal should be finalized in the 2nd quarter next year...so basically 9 months.
Is it worth it??? A 4.5 % gain in 9 months???
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