Exchange Ratio

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Exchange Ratio

The number of new shares in an acquiring firm that are given for each outstanding share of an acquired firm.

Exchange Ratio

In mergers and acquisitions, the number of shares an acquiring firm distributes for each validly rendered share of the acquired company. Each exchange ratio is calculated in accordance to the merger or acquisition agreement. Factors considered in determining the ratio are the relative value of each company prior to the closing of the merger or acquisition, any potential tax advantages for both parties, and applicable regulations.
References in periodicals archive ?
The new exchange ratios are no longer subject to the contingency adjustment.
The number of restricted stock units to be issued in exchange for a properly tendered eligible option will be based on exchange ratios that depend on the exercise price of the tendered option.
Following preliminary court approval, the Company would mail to Rubicon shareholders of record, an information circular setting out, in prospectus level detail, the final terms and conditions of the Plan and the basis on which Rubicon shareholders would, on its completion, hold or receive shares of the three public companies, including the respective share exchange ratios.
TMI would receive the right to exchange its interests in MSV and TerreStar at any time at the same exchange ratios that are being offered to the other shareholders and would subscribe for shares of a new class of Motient preferred stock with nominal economic value but having voting rights in Motient equivalent to those TMI would receive upon exchange of its MSV and TerreStar interests for Motient common stock.
A Special Committee of independent directors recommended approval of the exchange ratios to the Board of Directors.
In addition, based upon these numbers, at these levels of the offering range, the exchange ratios for current Bank Mutual Corporation public shareholders would be approximately 2.
In addition, based upon these numbers, at these levels of the offering, the exchange ratios for existing Bank Mutual Corporation shareholders would be approximately 2.
Hewlett-Packard Company (NYSE:HWP) today announced the preliminary exchange ratios in connection with its exchange offer for all outstanding shares of Indigo NV (Nasdaq:INDG).
NASDAQ:USAI) today announced the final exchange ratios in connection with its acquisition of a controlling interest in Expedia, Inc.
According to the letter, Asarco and Cyprus Amax would be willing to proceed with a three-way combination with Phelps Dodge if its proposed exchange ratios are increased, if Phelps Dodge fully underwrites the risk of antitrust problems with its proposal and if the contract terms mirror those of the Asarco/Cyprus contract.
Brazil also announced the Brady Bond Exchange Ratios to be used to determine the principal amount of the 11 5/8% U.