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PV Synergies = $200. Target has $200 undisclosed liabilities. Bidder offers an all-stock deal that gives target shareholders 75% of the synergies. What is bidders

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PV Synergies = $200. Target has $200 undisclosed liabilities. Bidder offers an all-stock deal that gives target shareholders 75% of the synergies. What is bidders stock price after the merger is executed and the market learns about the hidden liabilities?

Bidder MVBS, N=10 Target MVBS, N=10

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