It is 17 April 2020 and you have been employed by the conglomerate firm Rednip Ltd to advise on its proposed acquisition of the mining company Diacono Ltd. You estimate, on an after-tax basis, that the acquisition would enable the combined entity to reduce head office costs from $35m to $20m (in present value terms today) whilst also taking advantage of revenue synergies by increasing aggregate revenues by $20m (in present value terms today). Rednip Ltd also provides you with the following information and tell you that "Time is of the essence..." and "...not to waste it collecting additional data!". Number of shares Rednip Ltd 12 million Diacono Ltd. 30 million Share price as at 14 April 2020 $6 $1 14. Rednip Ltd decides to go ahead with the share offer that involves splitting the gains from the acquisition equally between the two companies. When they announce the terms of the offer, the share price of Diacono Ltd increases whilst the share price of Rednip Ltd declines significantly. The CEO of Rednip Ltd calls you in to the office and demands an explanation for why the share price of Rednip declined. Explain - in no more than nine lines - your position