Re Sqeeze Out: How does that work, what does it entail??? Anyone?

lt cap,

My understatnding of the 'squeeze-out' is that if NOK garners 95% of outstanding shares, they can dictate the terms (within reason, I suppose - you probably have to offer 'fair value' rather than give the remaining holder a penny per share lol. I was speculating on whether the 'private transaction' was a way to dig themselves into that 95% position.

However, I'm somewhat abashed to admit I 'researched' this by reading stories for NOK on Yahoo Finance - including one by (ugh) Motley Fool) - but for basic info, the couple most recent stories seem relevant. If you get more clarity, let us know, thanks.

Oh, also - the 'private offer' seems to according to one of the stories, involve the issuance of ~6 mil shares of stock - perhaps that's what dragging NOK down today - but it would be in the service of clearingthe 95% 'hurdle' - sneaky, but legal, I'd think?

Thanks for the explanation.  I think/guess/speculate that in order to get to the magic 95%, NOK is probably negotiating with that Fund that protested the terms of the deal shortly after the acquisition was announced, IIRC that fund owned some 5% of ALU.  NOK will need to agree to some terms and my guess is that the Fund has the upper hand, so NOK may need to sweeten the deal in order to get to that 95%, at which point they will be able to squeeze out the remaining hold outs.

So, if my wild guess is correct, it could be this which is negatively affecting NOK shares.