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Quick Share Ltd . ( QSL ) , a Sydney - based IT firm that specialises in providing video sharing services, has a market value

Quick Share Ltd.(QSL), a Sydney-based IT firm that specialises in providing video sharing services, has a market value of $150 million. A rumor starts to circulate in the market that Monster Ltd, a gigantic IT firm, is contemplating acquiring QSL. As a result, the market value of QSL has risen sharply to $185 million in less than one week. The consensus of market analysts opinion is that QSL has a strategic value of $200 million to Monster because QSLs business fits well with Monsters expansion plan.
(1) Based on the given information, what is the probability of acquisition?
(2) What is the value of synergy if the acquisition goes ahead?
(3) Jack Ma, the chief financial officer at Monster, makes the following recommendation to Monsters board of directors in regard to a potential acquisition offer: QSL has a market value of $185 million; therefore it would be reasonable for us to offer $185 million plus the synergy value to acquire QSL.
Does this recommendation make sense? Please explain.

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