Which of the following statements is FALSE?

Only when the merger itself creates economic value, the earnings per share of the merged company can exceed the premerger earnings per share of either company.

Cost-reduction synergies can be achieved through layoffs of overlapping employees and elimination of redundant resources.

A golden parachute is an extremely lucrative severance package that is guaranteed to a firms senior managers in the event that the firm is taken over and the managers are let go.

Mergers and acquisitions are part of what is often referred to as the market for corporate control. When one firm acquires another, there is typically a buyer (the acquirer or bidder) and a seller (the target firm).