VCM made a tender offer for PRTs 10 million shares outstanding. The offer was structured as follows: $95 cash offer per share for 50.1% of the shares tendered (with pro-rata acceptance for the shares tendered, in case more than 50.1% of shares are tendered) plus four different types of securities, with a total estimated value of $80, for the remaining shares. The offer is conditional on at least 50.1% of the shares being tendered, and if this condition is met, VCM will compulsorily acquire the remaining shares in exchange for the package of securities. You own 1,000 shares of PRT, and you believe that your shares are worth over $95. What should be your optimal/best-response strategy to VCMs offer?

Choose one option:

Tender only half of your shares because the offer is conditional on half of the shares being tendered.

Tender all your shares even though you think the offer is not appropriate because tendering is a dominant strategy.

Do not tender because this decision has a positive net present value (i.e., the benefit is greater than the cost).

Do not tender because the offer is inappropriate.