Nightingale plc wishes to acquire Robin plc and has decided to offer three of its shares for every five held by Robins shareholders. Nightingales PER (Price Earnings Ratio) is 11 and Robins PER is 6. The last reported earnings for Nightingale was 80 million and they have 200 million ordinary shares in issue. The last reported earnings for Robin was 15 million and they have 50 million ordinary shares in issue. Nightingales latest dividend per share was 7p and Robins latest dividend per share was 15p. Nightingale has undertaken share repurchases in the past rather than pay out dividends. Required: a) Calculate the value of the bid premium offered by Nightingale plc in order to acquire Robin plc. b) Evaluate the value of the bid made by Nightingale plc from the perspective of the shareholders of Robin plc, assuming that the takeover is successful and that the PER of Nightingale plc is maintained post-bid. c) Explain the implications of the winners curse for mergers and acquisitions. d) Evaluate potential reasons for why Nightingale plcs management team have opted for share repurchases rather than pay out dividends.