Then bad news comes out from either the acquirer or acquiree's latest earnings, key people leaving, etc and the stock falls some more.
So specify some extra requirements:
- The price of the deal will be a dollar amount; the stock portion of the debt will be settled through payment to the shareholders of the acquired company by paying them shares worth 2 even dollar installments over the next 2 quarters, and a final payment of the remainder in cash, with the number of shares for each installment determined according to the average value at the date of the actual payment.
- The previous installment will be adjusted by credit or debit against the next payment in 90 days to match the average stock price over all trading days in that period, and the next installment's dollar amount will be supplemented by or decreased by the adjustment, assure alignment with the agreed acquisition price.
- The shares transferred to make the installments have to be shares with an issue date before the deal was agreed.
- No additional stock shares can be written until after the deal is completely settled and paid, and shareholders of the acquired company have had 30 days of additional time to sell their shares, in case they wanted to do so.