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What happens to the share value (lower) of a company that is merged with that of another (higher value)?

Company 1 has a value of $5 a share Company 2 has a value of $35 a share

Public Comments

1. Shareholders in both companies will either sell their shares when the merger happens, or exchange them at whatever value the new companies shares are rated at So if the new company is rated at $30/share shareholders in company 1 will get 1 share for every6 they hold in the original company, shareholders in company 2 get 7 for every 6