Tuna Corporation is very interested in acquiring Barracuda Corporation.Tuna processes and packages seafood items.Barracuda supplies Tuna with the seafood.Tuna has been trying to negotiate a merger with Barracuda's management but has been unsuccessful.Barracuda's executives,who own 15% of the outstanding common stock,are concerned about losing their jobs after the merger.However,it appears that the majority of Barracuda common shareholders feel this merger would increase the value of both firms.Tuna currently owns 25% of Barracuda that it acquired 10 years ago for cash.Tuna has asked for your advice as to how to proceed.Suggest an effective method for Tuna to acquire Barracuda with the least tax cost.

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The Answer of Tuna Corporation is very interested in acquiring Barracuda Corporation.Tuna processes and packages seafood items.Barracuda supplies Tuna with the seafood.Tuna has been trying to negotiate a merger with Barracuda's management but has been unsuccessful.Barracuda's executives,who own 15% of the outstanding common stock,are concerned about losing their jobs after the merger.However,it appears that the majority of Barracuda common shareholders feel this merger would increase the value of both firms.Tuna currently owns 25% of Barracuda that it acquired 10 years ago for cash.Tuna has asked for your advice as to how to proceed.Suggest an effective method for Tuna to acquire Barracuda with the least tax cost.

Tuna Corporation Is Very Interested in Acquiring Barracuda Corporation