The affect that a takeover will have on an existing position will vary, depending on whether the takeover is completed using cash, stock or a mixture of the two.
Cash takeovers
IG will attempt to accept the offer when it is declared wholly unconditional in all respects. Your position will be closed out when the cash is received at the offer price and adjusted for interest, depending on the contract of the trade.
What if I have a short position?
When a cash takeover is confirmed, your short position will be closed out and cash will be debited from the account depending on the offer price and adjusted for interest.
Stock takeovers
IG will attempt to accept the offer when it is declared wholly unconditional in all respects. The original position will be closed, and a new position will be opened to reflect the terms of the takeover, based on the previous night’s closing price. Any stops or limits attached will also be amended accordingly.
Cash and stock takeovers
IG will attempt to accept the offer when it is declared wholly unconditional in all respects. The original position will be closed, and a new position will be opened to reflect the terms of the takeover, based on the previous night’s closing price and the cash offer. Any attached stops or limits will also be amended accordingly.
Please note:
This information is intended as a generic example, and subject to change at any point. It may not apply in every scenario.
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