Blue Minerals and Big Metal are negotiating a acquisition of Blue Minerals by Big Metal. The management team of both companies have agreed upon transaction value of about $100 per share for Blue Minerals stock, But are presently negotiating alternative methods of payment. Mohan Pandit, CFA, works for East bank, the investment banking firm representing Big Metals. Pandit has compiled the data in the following figure to analyze the transaction. Big Metal Blue Minerals Pre merger stock price $150 $80 Number of shares outstanding (mn) 100 50 Pre-merger market value millions) $15.000 4,000 Estimated NPV of cost reduction strategies $3,000 Calculate the post merger value of the combined firm, gains accrued to the target and gains accrued to the acquirer under the following conditions: Case 1) Cash offer of $100 per share for Blue Minerals Stock Case 2) Stock offer of 0.66 shares of Big Metals stock per share of Blue Minerals