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BAD Companys stock price is S30, and it has 80 milion shares outstanding You believe hat you buy he company and replace its management, its
BAD Companys stock price is S30, and it has 80 milion shares outstanding You believe hat you buy he company and replace its management, its value will increase by 17%. Assume hat BAD has a poison pill with a 15% trigger If triggered all target shareholders ther han the acquirer will be able to buy one new share in BAD or each share they own at a 80% discount Assume that the price remains at S30 while you are acquiring your shares. if BAD's management decides to resist your buyout attempt, and you cross the 15% threshold of ownership a. How many new shares will be issued and at what price? b. What will happen to your percentage ownership of BAD? c. What will happen to the price of your shares of BAD? d. Do you lose or gain from triggering the poison pill? If you lose, where does the loss go (who benefits)? If you gain, where does the gain come from (who loses)? a. How many new shares will be issued and at what price? Number of new shares issued is (Round to the nearest integer) The shares will be issued at sper share. (Round to the nearest cent) b. What will happen to your percentage ownership of BAD Co.? The percentage ownership will be 1% (Round to two decimal places) c. What will happen to the price of your shares of BAD Co.? The new stock price will bound to two decimal places) d. Do you lose or gain from triggering the poison pill
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