Value of synergies be shared in the proposed transaction

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Reference no: EM13913104

What is the incremental value to shareholders of the cost savings (synergies) projected in this merger? How will the value of synergies be shared in the proposed transaction? (Tax:40%, Discouunt Rate:11%, Year 4 cost saving: 350B, after year 5: perpetual growth rate 3% cost saving)

Year 1 Year 2 Year 3 Year 4

Restructuring Cost -400

Synergy Saving 125 250 350 350

Reference no: EM13913104

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