AAA is in a bidding war with BBB for acquiring Ypsi The current price of Ypsi stock = $65/share BBB has made an offer of $75 The intrinsic value of Ypsi to AAA is $95 What bid is feasible for AAA ? Nothing--current bid of $75 is already too high compared to the market price of $65 Offer at least $95 to defeat BBB Between $65 and $75--not to go over your head and loose shareholder values Between $75 and $95--it still is a good value