12.7 Archer Daniel Midland (ADM) wants to acquire AgriCorp to augment its ethanol manufacturing capability.

AgriCorp wants the deal to be tax free. ADM wants to preserve AgriCorp’s investment tax credits and tax loss carryforwards so that they transfer in the transaction. Also, ADM plans on selling certain unwanted AgriCorp assets to help finance the transaction. How would you structure the deal so that both parties’

objectives could be achieved?