OT: My company is being bought out by the parent company, what are the ramifications?

My company, Lafarge North America is over 50% owned by parent Lafarge S.A. (France). We just received word today that the parent was launching a buy-up of all outstanding minority shares at well above the market price. Today the market price rose 20%, to above the proposed buy up price.
For those of you that understand the corporate world, what change could there be to the structure of my company by the parent buying up more of the shares. Doesn't owning 50+% already give them total control?
After the e-mail from Lafarge S.A. that they were offering $75 US per share, for stocks that were trading at $60, and today topped $80, Lafarge N.A. sent an e-mail to all employees that we were forbidden to buy or sell Lafarge stock. All employees are given a several shares each year and many have bought more at a reduced price over the years.
Anybody seen this kind of maneuvering before? Whats going on?

Thanks,
Brian.

You might want to study lean managenemt strategies and applications (and update your resume.)

The majority stock holder can sometimes feel its a good time to buy up more stock when they feel that the current price is undervalued. This doesn't necessarily mean that they are looking to change management; they may see that the current managment is a big plus for future earnings/profits and that their new investment will be in good hands. Personally, I see this as a sign that the company is probably healthy and the future is bright.

Here is the press release:

http://www.lafarge.com/cgi-bin/lafc...BV_EngineID=cccdaddglkliijmcfngcfkmdhgfdggf.0

$2B transactions are nothing to sneeze at.

The idea here is pretty simple. Think about it this way: What would it be like if you were married and you and your spouse maintained seperate checking accounts & filed tax returns seperately, had seperate refridgerators, or even maybe had two different houses etc....

There's way too much B.S. involved in dealing with the current & complicated ownership scheme. The danger is they are going to leverage the entire company to do it, (the entire buyout is being funded by debt). The thing is that right now money is cheap, and quickly getting more expensive to borrow, so if it's going to be done, now is the time to do it. My guess is the cost and hassle of maintaining the current status quo figures out to me more expensive then it would be operating under a more streight forward corp structure.

Thanks guys,

Panic subsided...

Just received an e-mail that employees can resume trading in company stock.

What a ride!

I think corporate head office in the states is watching their backs, we should be OK at the plant level I guess.

Brian.

The stock trading prohibition I am sure was to prevent the appearance of insider trading.

I work for a company that was bought by a global company. We were privately owned. For the first 6-1/2 years they did nothing with us as we are making $$$ and have a plan to continue making $$$. They are now begining to integrate us with one of their groups so we work to gether to grow the business. One group of my company will be made its own entity to further streamline each group. Initially everyone was worried, after the first time the managers got with the integration team and got the word, things look good. Seems they want to combine the two groups to compliment each other.

Silver,

Usually only middle management is directly affected during the rearangments. Those that do the work that helps produce the income are usually not affected directly.

The term "LEAN" was used, it is the latest buzz word and method to increase productivity and reduce cost of production. So far, LEAN around here does not refer to staff. It is refering to streamlining operations to save $$. They are willing to spend the necessary $$ if it shows it will cut long term costs and improve work conditions and productivity.

According to the press release, you guys just got a new CEO.

Well, here is one of his marks he is making in the business.
CEO's always need to do at least one big thing to justify the big paycheck.

Other than that sounds like nothing to worry about, unless you're in middle management. They are always the most vulnerable in takeovers, upper management gets paid off or incorporated into the new management.
I've been through a few of these before. If your unit makes money then there is nothing to worry about, at least initially. After a few years you'll see any changes in direction the new management brings.