Take-under

PNC said the deal represented an offer of $2.23 for each share of National City, or nearly 19 percent below the stock’s closing price on Thursday. That makes the acquisition a “take-under,” meaning the purchase price is below the market value of the target company.

Yes SanDisk is being acquired at a 40% premium to its stock price at the beginning of October, but the deal amounts to a 20% take-under from beginning of year share prices.

And, immediately, they realized that Credit Suisse could not stand on its own two feet. And the government there in Europe, I think there was a lot of suasion to force what effectively is a shotgun take-under, a merger.