Question

Bulldog Industries is offering, as consideration for merger target Blazerco, 1.5 shares of their stock for each share of Blazerco. There are 1 million shares of Blazerco outstanding, and its stock price was $50 before the merger offer. Bulldog’s preoffer stock price was $40. What is the control premium percentage offered? Now suppose that when the merger is consummated six months later, Bulldog’s stock price drops to $30. At that point, what is the control premium percentage and total transaction value?


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  • CreatedMarch 26, 2015
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