Question
CRL Inc. is worth $458 million and has 103 million shares outstanding. Target Inc. has a market value of $406 million and has 47 million
CRL Inc. is worth $458 million and has 103 million shares outstanding. Target Inc. has a market value of $406 million and has 47 million shares outstanding. CRL believes the merged entity will be worth $982 million. CRL issues 89 million new shares to acquire Target.
- What is the NPV of the acquisition to CRL?
- What is the premium (in %) received by Target's shareholder?
- What is the maximum number of shares CRL would issue to acquire Target?
- What is the minimum number of shares Target would accept?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077647094
