Question
According to the article, Mr. Yoshiyaki Murakami has secretly bought 11.49% of the shares. Assume that his tender offer for 3,456 per Toshiba Machine shares
According to the article, Mr. Yoshiyaki Murakami has secretly bought 11.49% of the shares. Assume that his tender offer for 3,456 per Toshiba Machine shares (to buy 43.82% of the shares for 25.9 billion) reflects a 19% premium over the price he paid on his initial stake. Assume also that the tender price reflects the true value of the company under Mr. Murakami. What would be Mr. Murakamis financial gains from the takeover deal if it went through?
In response to the takeover attempt, the company warned that it is going to issue a poison pill. Suppose that the company has decided to issue the pill with the following conditions: The pill is triggered at 15% ownership. Upon the triggering event, for each share they hold, shareholders can buy 10 additional shares at a price of 1000. Assume that Mr Murakami decides to increase his stake to 15% and that the stock price just before the pill is triggered is 2900. Calculate the effect of triggering the pill on Mr. Murakamis ownership and value.
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