Revision question. Please answer a b c d e

Fresh Fruits Ltd is a company that grows and harvests fresh organic fruits. It is planning to acquire Igo Travel Dist Ltd, which specialises in the distribution of fruits to retailers. However, Igo Travel Dist Ltd does not support the deal. The chief executive ofcer of Igo Travel Dist Ltd, David Jones, is already thinking about four possible different pre offer defense mechanisms. Indeed, he is considering a poison pill, a poison put, a golden parachute or a supermajority voting for mergers. (a) Critically assess the ways in which Fresh Fruits Ltd can initiate a hostile merger? (b) Explain how each of the four different pre offer defense mechanisms being considered by David Jones work and critically evaluate the effectiveness of each. (c) In the end, Fresh Fruits Ltd manages to convince the board of directors of Igo Travel Dist Ltd to merge. After the merger, a press release will announce that a new company called Fresh Fruit Dist Ltd is being formed from the assets of the combined companies. The management of both companies have agreed to transaction value of Rs 37 per share of HealthCare Dist stock and are now discussing different methods of payment. The following data has been compiled: Fresh Fruits Ltd Igo Travel Dist Ltd Pre merger stock price Number of shares outstanding (millions) R535 Pre merger market value 2400 (millions) Estimated NPV cost Rs 400 million reduction synergies (d) What form of integration and type of merger will be involved if this transaction takes place. (e) Compute the: (i) Post merger value of the combined firm (ii) The gain to the target. (iii) The gain to the acquirer