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Assuming a 100% stock transaction with a 40% offer premium and the following facts: Acquirer Target Current Stock Price $40.00 $6.00 Net Income $500 million
Assuming a 100% stock transaction with a 40% offer premium and the following facts: Acquirer Target Current Stock Price $40.00 $6.00 Net Income $500 million $100 million Diluted Shares Outstanding (no options o/s) 200.0 million 250.0 million Transaction Expenses $0 million Calculate breakeven offer price before any purchase accounting adjustments and assuming no synergies
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