1. What was the financial condition of Ellerines Holdings Limited (EHL) before the merger proposal made by African Bank Investments Limited (ABIL)? What can you say about the ability of EHL to operate as a going concern, based on its financial condition at that time? 2. What conditions in the macro-environment, and within EHL itself, made it necessary for EHL to seek a change in business strategy? 3. Is the acquisition price offered by ABIL to EHL fair? Why or why not? (Show calculations). 4. Does the merger promise to yield value addition to EHL? to ABIL? (Show calculations). 5. What factors, in your view, may influence the success of the merger after the deal is sealed