Acquisition of stock

Acquisition of stock

Acquisition of Stock

An acquisition by one company of another in which the acquiring company buys the target company's stock. That is, rather than paying with debt or some other means, an acquisition of stock occurs when the acquiring company buys a majority of the target company's shares outstanding. This may be associated with a hostile takeover, where the acquiring company buys shares directly from stockholders, but this is not always the case. See also: Leveraged buyout.
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Japanese company Mitsui has inked a deal with Petrobras for partial acquisition of stock in the latter's natural gas distribution arm Petrobras GEis (Gaspetro) for about R$1.
Expedia, Inc (NASDAQ: EXPE), a US-based online travel company, has announced acquisition of stock in eLong, Inc (NASDAQ:LONG), a China-based online travel service provider.
2005-48 noted that, before May 1, 1991, the acquisition of stock as the result of the exercise of an option was viewed as a "purchase" for Section 16(b) purposes.
Restrictions on the Acquisition of Stock Acquisition Rights due to Transfers
For the buyer of a business an acquisition of assets is generally preferable to the acquisition of stock.
Previously, such so-called comfort rulings were available to resolve questions such as (i) whether a spin-off has an adequate corporate business purpose, (ii) whether a spin-off will be regarded as used principally as a device for the distribution of earnings and profits, and (iii) whether a spin-off and any prior or subsequent acquisition of stock in the Parent or the Spinco are part of a plan under section 355(e).
Such an alliance may involve additional strategic alternatives including new equity investments or the acquisition of stock or assets of SweetWater.
Tenders are invited for Acquisition Of Stock Under Cd, Apwd, Kamorta During 2015-16 (Till The Completion Of Schedule Of Quantity).
A "major stock acquisition" generally means the acquisition of stock pursuant to a plan by an acquiring corporation in a target representing 50% or more (by vote or value) of the target's stock.
However, letter ruling 200107025 recently stated that the acquisition of stock by a limited partnership and an LLC would not terminate a corporation's S election.
In situations where a corporation has incurred debt in connection with its acquisition of stock of another corporation and these criteria are not met or where the SEC rules are not applicable to the transaction, push down of debt, while not required, is still an acceptable accounting method.
The suit states that Citicorp controlled the activities of the development companies through the acquisition of stock and was directly responsible for the sale, management and development of property in the Rotonda West community and misled unsuspecting property owners.

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