Bavarian Merger
Bavarian Brew is planning on acquiring Bavarian Sausage in a pure exchange merger. Bavarian Brew’s stock is currently trading at $35 and they set the exchange ratio at 0.80. Bavarian Sausage has 75 million shares outstanding which are currently trading at $18 a share.
-Refer to Bavarian Merger.If you owned 250 shares of Bavarian Sausage what would be the control premium?
A) 55.6%
B) 35.7%
C) 62.5%
D) 41.9%
Correct Answer:
Verified
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Bavarian Brew is planning on acquiring
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