15. (ABN case) Why is the consortium paying more than Barclays for ABN Amro? A B C Synergies are less likely to add up with a diversified consortium than with a single buyer D E F A B C The consortium will pay a larger proportion in shares D 16. Which of the following is the MOST correct statement? The premium is typically lower in a hostile takeover F I do not want to answer this question The consortium benefits from more insider information None of the options listed Investors look ideally for a combination of a high control premium and a low illiquidity discount You can't apply a control premium to the value of the shares of a private company because there are no publicly traded shares I do not want to answer this question Companies in distress have a more volatile value and hence a higher relative illiquidity premium on average E It is not appropriate to apply an illiquidity discount when valuing a company for sale to a public buyer The illiquidity discount for public companies has been steadily increasing over the years as investors' appetite for those has decreased 15. (ABN case) Why is the consortium paying more than Barclays for ABN Amro? A B C Synergies are less likely to add up with a diversified consortium than with a single buyer D E F A B C The consortium will pay a larger proportion in shares D 16. Which of the following is the MOST correct statement? The premium is typically lower in a hostile takeover F I do not want to answer this question The consortium benefits from more insider information None of the options listed Investors look ideally for a combination of a high control premium and a low illiquidity discount You can't apply a control premium to the value of the shares of a private company because there are no publicly traded shares I do not want to answer this question Companies in distress have a more volatile value and hence a higher relative illiquidity premium on average E It is not appropriate to apply an illiquidity discount when valuing a company for sale to a public buyer The illiquidity discount for public companies has been steadily increasing over the years as investors' appetite for those has decreased