Consider the following information for two all-equity firms,
Firm Attrex and Firm Maliwan:
Attrex
Maliwan
Shares outstanding
4,800,000
175,000
Marketprice per share
$ 30.83
$ 371.43
Attrex estimates that the value of the synergistic benefit from
acquiring Maliwan is yearly positive Cash Flow of $1,085,000 in
perpetuity. Maliwan has indicated that it would accept a cash
purchase offer of $525.715 per share. Attrex is thinking about
offering 38% of their shares in exchange. How should Attrex
proceed?
Consider the following information for two all-equity firms, Firm Attrex and Firm Maliwan: Attrex Maliwan Shares outstan
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