Bigco Inc. is considering acquiring Smallco Inc., a publically traded firm in the same industry. Smallco is
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Bigco Inc. is considering acquiring Smallco Inc., a publically traded firm in the same industry. Smallco is currently trading at $12 per share and has 20 million shares; it is believed to be trading at its fair value. Bigco feels that the present value of potential synergies is $50 million. What is the highest bid price that Bigco should consider paying for Smallco shares?
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Related Book For
Financial Management Concepts and Applications
ISBN: 978-0132936644
1st edition
Authors: Stephen Foerster
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