Controversial Airlines has announced a merger with Nova airlines. Before the announcement, the shares of Controversial were trading at $10 but on the announcement, they fell to $9. Novas shares remained unchanged at $20. Assume for simplicity that the market did not move that day. Controversial offered an exchange, whereby each of Novas shareholders would receive two shares of Controversial. Nova claimed that that the price to be considered should be $9- that is, each shareholder should receive 20/9 = 2.2 shares. What do you say?