Acquisition Premium

Acquisition Premium

The difference between the estimated value of a target company and the price the acquiring company pays to buy it. The acquisition premium may be either above or below the original estimate and comes from revised estimates and changes in the acquisition agreement.
References in periodicals archive ?
The Company will not seek recovery of any acquisition premium from the acquired Colorado customers and will reduce annual SourceGas distribution customer charges by $200,000 per year for up to five years.
The reference to the 48% acquisition premium is to Teva's potential offer price of $82.
The IRS issued final and temporary regulations providing rules for brokers to report bond premium and acquisition premium as well as governing information reporting of transactions involving debt instruments and options.
Multiple elections are available to holders of debt instruments regarding the computation and/or recognition of original issue discount (OID), acquisition premium, and secondary market discount and premium, all of which affect the holder's basis in the security.
Finally, they do not measure the impact of accelerated vesting on the acquisition premium, as we do here.
Including the acquisition premium when calculating the BNSF's rate of return on 2010 net investments also makes it less likely that STB would find that the railroad was " revenue adequate" under federal law, thereby making it "less likely for captive shippers to obtain relief in BNSF rate cases," the petitioners stated.
Jim McKerlie, the Chairman of CER, stated "This is a great result for the shareholders of Circumpacific providing them with full liquidity at an attractive acquisition premium.
The acquired utility's shareholders receive an immediate benefit in the form of an acquisition premium.
These agency issues increase the likelihood that REITs would incur an acquisition premium.
The acquisition premium is defined as the ratio of the final price paid per target share, divided by the price prior to the takeover bid.
Indeed, no longer would any board worth its salt rely merely on an investment banker's fairness opinion to justify the payment of a significant acquisition premium.
But neither company has confirmed talks over such a deal and Tuesday's downgrade was enough to scare off many who had bet on an acquisition premium.
Full browser ?