Company A Acquires Company B Synergy benefits = $600 Mill Offer to company B shareholders: Company A gives 5 shares for 3 of company B shares Company A shares = $25 for 110mill outstanding Company B Shares = $30 for 60mill outstanding Value of combined company?

Company A Acquires Company B Synergy benefits = $600 Mill Offer to company B shareholders: Company A gives 5 shares for 3 of company B shares Company A shares = $25 for 110mill outstanding Company B Shares = $30 for 60mill outstanding Value of combined company?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 12CE

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Question

Company A Acquires Company B

Synergy benefits = $600 Mill

Offer to company B shareholders: Company A gives 5 shares for 3 of company B shares

Company A shares = $25 for 110mill outstanding

Company B Shares = $30 for 60mill outstanding

Value of combined company?

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