Find what was the anticipated shareholder value added

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Problem 1: Firm X has made an offer to acquire Firm Y for $1,750 million. At the time of the offer, Firm X had a market capitalization of $2,400 million, with 48 million shares outstanding, and Firm Y had a market capitalization of $1,600 million, with 28 million shares outstanding. Let's assume that Firm X is anticipating synergies worth $500 million from the deal. If a cash offer was made, what was the anticipated shareholder value added for the acquirer? Round your answer to the nearest million.

Reference no: EM132755132

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