10 Which of the following statements regarding merger deals is(are) correct? Choose all correct answer(s) If the premium paid by the bidder exceeds the expected additional value to be created through the merger, the bidder's share price is likely to drop on the announcement of the bid. A bidder can often acquire a public-listed company for less than its current market value. On average, the price of the target increases substantially, while the price of the bidder does not increase by much. Synergies are by far the most common justification that bidders give for the premium they pay for a target. Reset Maximum marks: 4