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Windbnb recently announced plans to acquire 100% of Flipkey corporation. Here is current share information for both companies at the time of the announcement
Windbnb recently announced plans to acquire 100% of Flipkey corporation. Here is current share information for both companies at the time of the announcement and the projected benefits (economies of scale, synergies, enhanced distribution networks) from the merger: Windbnb share price Windbnb #shares outstanding Flipkey share price Flipkey # shares outstanding Projected benefits of merger a. $ $ $ 48.00 8,000,000 18.50 2,700,000 12,000,000 Required (2 parts): What is the maximum number of shares Windbnb can offer Flipkey shareholders for each of the Flipkey shares (before the acquisition becomes a negative NPV investment)? b. If Windbnb made a cash offer instead of a share for share offer to Flipkey shareholders; up to how much per share would they be willing to offer?
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a Maximum Number of shares offered 1040625 b Per share willing to Offer 2294 Windbnb share ...Get Instant Access to Expert-Tailored Solutions
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