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A wants to acquire T for a price that will split the synergy value equally between the two firms. A has a market value of
A wants to acquire T for a price that will split the synergy value equally between the two firms. A has a market value of $1 billion and 10 million shares outstanding. T has a market value of $400 million, and 20 million shares outstanding. The synergy value is $200 million. The payment will be 50% in cash and 50% in shares of A. How many shares of A will be offered for each share of T? Multiple Choice 0.1136 0.1544 0.1624 1.8544 None of the above. O O O
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