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Please give answer fast Question 4 Not yet wered -ked out of -0.00 - Flag bion A Limited is considering making a tender offer for
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Question 4 Not yet wered -ked out of -0.00 - Flag bion A Limited is considering making a tender offer for B Lad. The merger would result in economies of scalo (Benefit of synergy of Rs 20 lakh The relevant financial information for 8 Ltd. is as follows Number of shares outstanding 2,00,000 Earings per sharo Rs.12 Market price per share Rs.76 A Limited intends to make a two-tier tender offer wheroin it will offer Rs.85 for the first 1,00,000 shares and Rs.70 for the remaining sham a. If the tender is successful, how much should A Lid pay to B Ltd.? b. If the Economies of merger is Rs 20,00,000, How much of this goes to the Shareholders of A Lid & Lid respectively? How much are the shareholders of A Ltd. And B Lid, benefitting from the economies of merger? c. If the shareholders of B Ltd act together as a Group, wil they benefit in terms of price being offered? If so & if not give reasons. (4 +3+3* 10 Marks) Step by Step Solution
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