Question
Wildcat industries has 1,750 shares outstanding at a market price of $40 per share. Bulldog Oil has 2,000 shares outstanding at a market price of
Wildcat industries has 1,750 shares outstanding at a market price of $40 per share. Bulldog Oil has 2,000 shares outstanding at a market price of $10 per share. Wildcat plans to merge with Bulldog and believes the merger will create $10,000 in synergies.
A) If the bargaining power is equally split between the two firms, what will the offer price per share be if Wildcat offers cash?
How many shares in total of the bidder will be offered if the offer is in stock?
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Operations And Supply Chain Management
Authors: F. Robert Jacobs, Richard Chase
14th Edition
287
