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Acquisition & merger

SSaif4y ago
Respected sir, If there is a mixed offer in an acquisition that is cash + share-for-share Then to calculate the % gain in shareholders value of the acquired Co. The value per share used will be that of the post acq. Co.? I mean how to calculate a value per share that will be used in the calculation. I bit confuse in this type of arrangement.
John MoffatJohn MoffatTutor4y ago#1
If the question is asking which offer the shareholders in the target company will be prefer then it will usually be the pre-acquisition share price of the acquiring company that is relevant (because the shareholders in the target company will not have the information needed to be able to estimate the post-acquisition share price of the acquiring company).
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