NLT announces to acquire 100% shares of TNN with a cash offer to pay $5 premium per share to the shareholders of TNN. The share price of NLT increased from $10 to $11 on the announcement. NLT has 20 million shares outstanding. TNNs board of directors recommends shareholder to accept the offer. Assuming the market is perfectly efficient and there is no other information on the same day to influence share price. Which of the statements is TRUE regarding NLTs position in the deal.

Select one:

a. The merger is a hostile takeover

b. The shareholders of NLT will suffer a loss in this deal.

c. The expected total synergy is at least $20 million.

d. NLT is the target company in this deal.

e. TNNs existing shareholders will become the shareholders of the merged firm after the deal is closed.