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4. Liamiga Ltd. and Oualie plc are companies listed on the Stock Exchange Liamiga is considering a takeover bid for Oualie, using a share for
4. Liamiga Ltd. and Oualie plc are companies listed on the Stock Exchange Liamiga is considering a takeover bid for Oualie, using a share for share exchange. Relevant information is as follows: Limaiga Oualie Share price today $10 $8 Shares in issue 10 million 5 million If the acquisition goes ahead, synergies with a total of $20million are expected to be achieved. The Oualie plc shareholders have indicated that they would be happy to accept an offer that enabled them to achieve a 25% premium on acquisition. REQUIRED: Advise the directors of Liamiga Ltd on a suitable share for share exchange offer which meets the criteria specified by Oualie plc.'s shareholders. Calculate the gains to both sets of shareholders (in $ and %) terms as a result of the share for share exchange
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