company takeover share prices

302 views

Eli Lilly & Co. just announced that they are going to buy Sigilon Therapeutics for $14.92 per share. Why are they buying it for a much higher share price than through the stock exchange where the closed quote was $3.93 per share?

In: 53

9 Answers

Anonymous 0 Comments

They buy at a premium to incentivize enough people to sell their shares that they end up with control of the company.

You are viewing 1 out of 9 answers, click here to view all answers.