How much are agiles shareholders likely to gain or lose

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Suppose Agile Corporation of the United States acquires Mobile Plc of the United Kingdom. The value of Agile stock on the Nasdaq in the United States is $3 billion. Mobile sells on the London Stock Exchange for the pound sterling equivalent of $1 billion. Agile pays a 20 percent acquisition premium to acquire Mobile. The synergy created through the combination of Agile and Mobile adds 10 percent to the value of the combined firm. How much are Agile's shareholders likely to gain or lose through this acquisition?

Reference no: EM13871575

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