Forbid sales of shares by subsidiaries?
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trein91
- Posts: 8
- Joined: Tue Jan 13, 2015 8:32 am
Forbid sales of shares by subsidiaries?
Often what happens when you want to use a subsidiary (A) to takeover another company (B) is that company B tries to buy back its shares from your subsidiary A by offering an above market price value, which the CEO of subsidiary A accepts. This happens even when you used subsidiary A to offer up to 4x the market value to buy from company B. (And then it resells it for only 1.5x market value netting a crazy loss amount).