Ask Our Pros: Kerr-McGee's Auction Price

James J. Cramer tells a reader how he would respond to this situation.
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Reader:

I own some

Kerr-McGee

(KMG)

, and am trying to understand the company's offer to buy shares in an auction between $85 and $92. I understand that this offer is a response to an outsider's pressure on the company. This offer is a substantial premium to the present price. If I bid some or all of my shares, am I likely to actually be able to sell at that price? What should I be evaluating in this offer?

-- G.L.

James J. Cramer:

The current stock price, around $75, reflects the tender offer's upside. If I still owned it for my Action Alerts PLUS portfolio, I would sell it all

now

.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by

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