points. ABC Corporation is very interested in acquiring App Annie Corporation. ABC processes and packages seafood items. App Annie supplies ABC with the seafood. ABC has been trying to negotiate a merger with App Annies management but has been unsuccessful. App Annies executives, who own 15% of the outstanding common stock, are concerned about losing their jobs after the merger. However, it appears that the majority of App Annie common shareholders feel this merger would increase the value of both firms. ABC currently owns 25% of App Annie that it acquired 10 years ago for cash. MPC has asked for your advice as to how to proceed. Suggest an effective method for MPC to acquire App Annie with the least tax cost.