Question 1 1.1. Distinguish between a merger and an acquisition 1.2. List any 4 defences a company may adopt to fend off a hostile bid. 1.3. The shareholders of Bela Bela Company have voted in favour of a buyout offer from Mookgophong Ltd. The information pertinent to each firm is as follows: Data PE Ratio Shares in issue Earnings (after tax) Bela Bela Question 1 6 30000 320000 Mookgophong 18 120000 600000 Bela Bela shareholders will receive one share in Mookgophong for every share they hold. 1.3.1. What will the EPS of Mookgophong be after the merger? 1.3.2. What will Mookgophong's share price and PE ratio be if the NPV of the acquisition is ze 1.3.3. What is the value of Bela Bela to Mookgophong