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LinkedIn Shares
Matt / beginner
Posted: 13 June 2016 20:54:19(UTC)
#1

Joined: 13/06/2016(UTC)
Posts: 1

So just a quick one.

I've started buying shares for a bit of fun over the last few months via Halifax. In March I used the stocks and shares ISA to buy shares in LinkedIn.

Obviously today the news has broken that Microsoft are buying LinkedIn and my shares have shot up.

Now I've never done this before but do I sit tight until the deal is complete or sell now? Is trading on the shares suspended? Should I sell half now and then the rest later?

I know this sounds very basic but I only play for fun and didn't expect to get a 50% increase in such a short period.

In summary

What are my options? Or is the price now fixed?

I know this probably sounds like a basic question for you pros.
john_r
Posted: 15 June 2016 17:33:38(UTC)
#2

Joined: 18/06/2010(UTC)
Posts: 182

Thanks: 202 times
Was thanked: 183 time(s) in 91 post(s)
Congratulations on your successful share choice.

I haven't done any real research here so take my comments with a pinch of salt and by the way I not a financial pro.
I understand the buy price $196 has been accepted by both sides of the deal.
So looking at todays price at $191 suggests that there isn't another bidder waiting in the wings. If there was then the share price would now be higher than the bid price.
That said I now expect the $191 price to stay relatively flat inching up week by week until the $196 figure is finally reached near the completion date of the merger.
This could take months to get finalised so selling now gives you the position of cash in hand to invest elsewhere. This would be my personal choice.
Your alternatives are of course to wait weeks or months for the $196 (2.5% extra). There could be other options eg take shares in Microsoft which transpire later but for me I'd be happy to take the cash now and pat myself on the back.
Raymond Butler
Posted: 19 June 2016 14:32:37(UTC)
#3

Joined: 19/06/2016(UTC)
Posts: 1

John R

Good post and sound advice. Well said!
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