Consider the following data in relation to a proposed acquisition, where Firm B will take over Firm A in a horizontal takeover. Pre-merger Value A Pre-merger Value B Post-merger Value A+B Cash Offer Share Offer $600m $475m $1,200m $630m 53% of Shares in A+B Estimate the gains available from the merger. (4 marks) b. Estimate the value of the merger to firm A's shareholders under both the cash and share offer. (6 marks) C. Estimate the value of the merger to firm B's shareholders under both the cash and share offer. (6 marks) d. Which offer will predominate, cash or shares, if the shareholders of A are given the choice? (4 marks)