Question
G is negotiating an acquisition of K. The tentative agreed upon value is $27 per share (all cash offer) for K's stock. You work
G is negotiating an acquisition of K. The tentative agreed upon value is $27 per share (all cash offer) for K's stock. You work for the investment banking firm representing G. You have compiled the following information: Pre merger price Shs out (mill) Pre merger mkt value (mill) Synergies value (mill) G 36.00 50.00 1,800.00 120 K 24.00 24.00 576.00 Calculate the following: A. Post merger value of the combined company B. Calculate the gains accruing to the target C. Calculate the gains accruing to the acquirer
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