Each DDI share is estimated to be worth 30 cents hence 6 shares are $1.80 while 100 shares of KWG are around 9 cents x 100 = $9 hence you get 20 % (1.80/9 x 100=20%)profit on your KWG shares assuming the KWG share price does not change. If the shares of KWG drop by 6% then you still make 13%. The important thing to note is that if Cliffs comes to buy KWG, DDI would probably not even be considered in the buyout. DDI would be worth pocket change. This way the SH at least will get something wether Cliffs buys KWG or not.