Public Bids for the Acquisition of Unregistered Securities

In exchange they offer money or securities at a superior price to that of the market. This higher price is justified due that the buying company (a public Bid for acquisition of shares is usually launch by legal persons) will try to improve the results of the bought company and because on the quotation of shares at the stock market the value for taking another company is not included.

Types of Public Bids for the Acquisition of Unregistered Shares
These public bids can be of two types: voluntary and obligatory. Among these last the most common is that which pretends to acquire a significant capital share of a company.

Voluntary public bids for the acquisition of unregistered shares: they are launch upon securities that may or may not be traded at the stock exchange market. He who puts it in function is no obligated to execute it.

Obligatory public bids for the acquisition of unregistered shares: they are formulated only upon securities negotiated on the stock exchange market and always that they fulfill a series of terms:

If a significant amount of participation is acquired.

If when acquiring a volume of shares that supposes more than 50% of the votes of a company causes the modification of the statutes of the same.

If the shares of the company are excluded from the stock exchange market.

If you acquire a company that is not traded on the stock exchange market but that has a participation that permits to control another company that is negotiated on the market.

There also exist other classifications for the public bids for the acquisition of unregistered shares that attend to other criterions such as:

According to the objectives pretended:

To acquire the control of a company: in its totality or by acquiring the necessary number of shares to obtain it.

To reinforce the control you already have: the pretension is to be in charge of the management of the company, by well eliminating a minority group or by applying an equal treatment to all

To acquire   a small percentage: its obligatory to fixed the maximum amount of shares you which to reach.

By the counterpart offered:

In cash: with the finality of guaranteeing the existence of funds.

In shares: owned by another company or by a filial that is part of the company’s assets or from the company that has launched the public bid.

By the position of the managements:

• Accorded offers
• Accepted offers
• Opposed offers