Firm ABC and firm DEF are negotiating a friendly merger of DEF by ABC. The two...
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Firm ABC and firm DEF are negotiating a friendly merger of DEF by ABC. The two companies have agreed upon a cash offer of $25 per share for DEF's stock. The following data has been compiled to analyze the transaction. Pre-merger stock price Number of shares outstanding (millions) Pre-merger market value (millions) Estimated NPV of cost reduction synergies ABC $36 50 $1,900 $140 million DEF $24 30 $682 Given the information above, calculate the post-merger value of the combined firm and gains accrued to the acquirer ABC. Firm ABC and firm DEF are negotiating a friendly merger of DEF by ABC. The two companies have agreed upon a cash offer of $25 per share for DEF's stock. The following data has been compiled to analyze the transaction. Pre-merger stock price Number of shares outstanding (millions) Pre-merger market value (millions) Estimated NPV of cost reduction synergies ABC $36 50 $1,900 $140 million DEF $24 30 $682 Given the information above, calculate the post-merger value of the combined firm and gains accrued to the acquirer ABC.
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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