Question
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $31 per share, and LE is trading for $28 per share,
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $31 per share, and LE is trading for $28 per share, implying a premerger value of LE of approximately $3.9 billion. If the projected synergies are $0.98 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV?
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
9th Edition
0128016094, 978-0128016091
