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What happens to per share value when a company is sold at a higher rate? who gets the increased money?

X is sold to Y. X has a share value of $10, Y has a share price of of $20 at the time of selling. Either the shareholder gets cash/equivalent worth of shares (at $20) in the new company depending on the deal. But if so, who gets the extra 10$ per share? shareholders?

Public Comments

1. you answered your own question. if x sells out to y. y share price is 20 and x is 10. it depends on what y pays to x,. We will use the number that each y share is worth 2 x shares. the bottom line the shareholders of x get the purchase price that y pays. the value is reflected in the stock price. if you want a real life version of this, go to EPD they just bought TPP and see how it works.
2. I think you may be looking at what really happens incorrectly. In general, Y will offer X a selling price that is expressed in terms of X's stock value. There is an indirect relationship to the price of Y, but in terms of a direct relationship between the price per share of one stock to the other there isn't one. For example, if Berkshire Hathaway offers to by X, the "extra" isn't in terms of Berkshire's stock ($91,640 per share difference as of this morning) but in terms of the total value of the offer in dollars divided by the number of shares in terms of stock X....to repeat your example, Berkshire would still be offering $20 per share for X. Or, Wells Fargo (current price: $25/share) might offer 0.8 share of Wells Fargo stock for each share of stock X. This is still $20 each for X: $25*.8=$20.