Hermes Inc. and Atlas Inc., have agreed to a merger. In this deal, Hermes will exchange 1 share of Hermes (there are 500M shares o/s for Hermes), for 3 shares of Atlas Inc., stock (of which there are 40M in total). Just before the announcement of the deal Hermes was trading at $40 per share, whereas Atlas was trading at $10 per share. After the announcement, the price of Atlas shares rose to $52, whereas Hermes fell to $39.

Between the pre-announcement prices, and the after-announcement prices, by how much does the value of the deal change from Atlas shareholders perspective?

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