Question: This question is continued from the previous question. Firm X has made an offer to acquire Firm Y for $1,750 million. At the time of

This question is continued from the previous question. Firm X has made an offer to acquire Firm Y for $1,750 million. At the time of the offer, Firm X had a market capitalization of $2,400 million, with 48 million shares outstanding, and Firm Y had a market capitalization of $1,600 million, with 28 million shares outstanding. Lets assume that Firm X is anticipating synergies worth $500 million from the deal. What would the anticipated shareholder value added be for the acquirer if they offered a one-for-one stock deal? Round your answer to the nearest million. Do not include a comma or dollar sign.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!