In 2006, Danaher, Inc. announced its intent to acquire Sybron Dental Specialties, Inc., a manufacturer of dental products. Danaher indicated that it had agreed to pay \($47\) per share for all of Sybron’s outstanding shares. The cash tender offer, which included the assumption of

\($200\) million of Sybron debt, was valued at \($2\) billion. In response to the acquisition announcement, Danaher’s shares increased by 1.3 percent. Discuss how the capital market responds to merger and acquisition announcements, and specifically, the message implied by the market’s response to Danaher’s announcement of its planned acquisition of Sybron. What was the equity value of Sybron implicit in the transaction?