Uber recently approached Grubhub with a potential all-stock takeover bid. Apparently it is structured as a Fixed Exchange Ratio (Floating Price) offer. This suggests Uber does not expect stock price to rise during the time it takes to consummate the merger. In public market M&A transactions, where at least part of the consideration is stock of the acquiror public company, the value offered is subject to market risk as the acquiror’s stock price changes. A visual illustrates.