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Target Co is trading at $1. Bidder Co believes it is trading at fair value on a stand alone basis but that if it controlled
Target Co is trading at $1. Bidder Co believes it is trading at fair value on a stand alone basis but that if it controlled Target Co it could add 20c per share of value. It further believes that if it combined its operations with Target Co it could extract synergies of 30c per share.To get the deal over the line it decides to share the full control premium plus half the synergies with Target Co shareholders in the offer price.
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
