Predator is valued on the market at 1,000 million, and Prey at 200 million. Predator values the

Question:

Predator is valued on the market at £1,000 million, and Prey at £200 million. Predator values the expected post-merger synergies at £50 million. If it bids £230 million for Prey, what is the NPV of the bid? What is the share of the gains for each firm?

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