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AROUND THE WEB

NY Times
August 26, 2006
Gretchen Morgenson

In the three days between Koch's board approving a bid to purchase Georgia Pacific and the announcement, trading on GP increased 120 percent

Investors who bought in that period realized a 40 percent gain in three days

...Merger talks [between Koch and GP ] continued through October and into November. Both sides conducted corporate analyses — known as due diligence — from Nov. 8-11. Koch Industries’ board voted to approve a bid on Nov. 10.

That day, volume in Georgia-Pacific shares jumped 37 percent...and the number of trades in the stock rose significantly as well...On Friday, Nov. 11, volume increased yet 66 percent more from the previous day’s high level. Georgia-Pacific shares rose 5.5 percent over the period. The company made no announcements either day...

On Sunday, Nov. 13, Koch Industries announced that it would pay $21 billion for Georgia-Pacific, or $48 a share, a 39 percent premium to the closing price the previous Friday. Anyone who bought Georgia-Pacific shares on either Nov. 10 or Nov. 11 stood to gain 40 percent in just a few days. A spokeswoman for Koch Industries did not return phone calls seeking comment.

Also see:

Koch Foundations

 

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