Gerrards has a market value of 450,000,000 and 30,000,000 shares outstanding. Lotus has a market value of 150,000,000 and 15 million shares outstanding. Gerrards is deciding on whether to make a bid for Lotus. Gerrards estimates the combined firm with synergies would be worth 700,000,000. A premium of 25,000,000 is expected to buy Lotus. A premium of 25,000,000 was expected to buy Lotus. If the premium is paid, what fraction of the firm would Lotus shareholders? 25 5.55 29.41 3.57 28