Saturday, August 6, 2011

What does the term ”being bought out” mean?

PNC and National City Bank are actually merging. PNC is buying $5.2 billion of National City Bank stock and also paying $384 million directly to National City Bank. If that was all that was happening, that would be "buying out." However, National City is also recieving 0.0392 shares of PNC stock for each National City share purchased by PNC.

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