Thermo Fisher (Fisher) is considering an acquisition of Life Technologies (Life Tech). Life Tech shares currently trade at $60.75 per share with 179.3 million shares outstanding. Fisher estimates that the standalone value of Life Tech is $12,727.90 and the expected value of synergy created from the acquisition is $3,159.30. Fisher offers $85.05 for each Life Tech share

Assume now that Fisher aims to pay 50% of net synergy to Life Tech shareholders? What will be the new offer price and the premium implied by this new price?

Answer: Offer price = $79.80 Premium = 31.36% - How did they get these answers?