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Please help. Thank you Suppose a company whose shares are trading at $20 per share becomes a target of a tender offer and the suitor

Please help. Thank you

Suppose a company whose shares are trading at $20 per share becomes a target of a tender offer and the suitor is prepared to pay $28 per share. You run a valuation and concludes that a fair valuation of the company would be $1 billion. If the company has 40 million shares outstanding, explain briefly the possible reason(s) for the suitor to offer that price?

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