Question: please explain why the answer is no On April 5, 2008, firm AAA announced it would acquire all outstanding common stock of firm TTT. Holders

please explain why the answer is no

On April 5, 2008, firm AAA announced it would acquire all outstanding common stock of firm TTT. Holders of TTT will receive $25.70 in cash and 0.5 shares of AAA per cach share of TTT. TTT's shares closed at $54.24 while those of AAA closed at $60.10 on the announcement day. If the merger succeeds, would the profit to a merger arbitrage strategy be affected by the price of AAA share on the merger completion day? No x Yes Uncertain

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