Terremark Shareholders Saying "No!" To Verizon Bid (TMRK)
Shareholders of Terremark (NASDAQ: TMRK) are holding their stock higher than Verizon's (NYSE: VZ) bid of $19/share.
Traditionally, when shareholders hold the price of a company's stock higher than the takeover offer (in this case, $19/share), that is a signal to company management that shareholders want management to reject the offer and pursue higher value for shareholders. Otherwise, shareholders would not rationally hold the price of shares higher than the takeover price and therefore lose money when the company is acquired below the current price.
Alternatively, holding share prices higher than a takeover offer can signal to company management that shareholders would like management to seek further bids from other companies.
Over 3.6 million shares have traded today in Terremark after Verizon made a bid for the shares over 30% higher than yesterday's closing price. At last check the shares of Terremark were trading at $19.09.
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