An acquiringfirm, A, seeks to buy a targetfirm, T. The acquiring firm has better managers. The value of the targetfirm, if acquired byA, is $120 million. The value of the target firm under its current management is only $95 million. However, the managers of T can impose a poison pill that would reduce the value of firm T to the acquirer by amount P without providing any benefit to shareholders of T.

Assume the poison pill reduces the value of firm T to firmA's and to firmT's shareholders by the same amount.

The minimum value of P that would prevent A from acquiring T is