NewCo is trying to fully acquire OldCo in an all cash offer. NewCo will assume all the debt of OldCo as part of the acquisition. The expected synergies from the acquisition are $700 million. Before the transaction OldCo has 25 million shares outstanding, a share price of $65, and outstanding debt of $500 million (no excess cash). Is the following statement true or false?

If NewCo offers $93 per share of OldCo and the acquisition is successful, the shareholders of OldCo will have captured the full value of the synergies of this transaction.

True

False