Volta Stock Rises or Falls After News of Being Acquired? - GrowthRapidly
Abstract
What happens to Volta stock price now that it is being acquired by Shell? The short answer is that Volta stock's price will likely rise. A few of them might be: what happens to the stock price now? Will it rise or fall? When will the deal be approved? What happens to my shares when it happens? Here are some brief answers: Typically, when one company acquires another, the target company's stock rises because the acquiring company pays a premium for the acquisition, so it can provide an incentive for the target company's shareholders to approve the acquisition. The stock will likely rise up to near the full deal price as the closing date of the transaction approaches. The main reason for this is because the shareholders will only agree to the deal if the purchase price exceeds their company's current value. Volta has not announced one and there is also the possibility that the deal may not go through as the shareholders have to vote to approve it. In conclusion, the stock price of Volta will likely rise since Shell will pay a premium on its share as a way to entice shareholders. The stock price of Volta may also fall on the news since Volta has been going through financial turmoil and, as a result, is being bought at a discount.
