Value-destroying for the shareholders

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Q) If the acquirer's earnings per share (EPS) decrease after a merger, then we know that the premium paid by the acquirer was higher than the synergies, i.e. the merger was value-destroying for the shareholders of the acquirer.

True or False?

Q) The share prices of both the "target" firm and the "acquirer" firm usually decrease when an acquisition bid is announced to the public.

True or False?

Reference no: EM132500771

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