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Suppose that the actual takeover price was 4 3 . 5 0 in cash per share of SABMiller. How does the premium offered to SABMiller

Suppose that the actual takeover price was 43.50 in cash per share of SABMiller. How does the premium offered to SABMillers shareholders compare with that in a typical merger? (h) When the deal was announced on September 17,2015. SABMillers share price increased from 39.87 to 42.10. Why? Why didnt the price reach the offer price of 43.50? (i) When all the details of the deal were announced on October 12,2015, SABMillers share price decreased in value and the share price fell from 42.43 to 42.09. Why? (j) On July 20,2016, before the completion of the deal, the United States Department of Justice (DOJ) announced that it would require AB InBev to divest SABMillers stake in Miller Coors in order to proceed with the acquisition. Miller Coors was a joint venture with the Canadian Molson Coors Brewing company in which SABMiller owned a majority stake. AB InBev agreed and the deal was completed in October of 2016. Why would DOJ require such a divesture to allow the acquisition? Please elaborate.

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