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What do the shareholders of abc pic gain from acquisition

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Question - Company ABC PIc has a present value of E110.2 million and Company XYZ Lid has a present value of $86.0 million. Merging the two would enable cost savings with a present value of $4.9 million. ABC PIc acquires XYZ Ltd for $89.0 million.

a) What do the shareholders of ABC PIc gain from the acquisition?

b) What do the shareholders of XYZ Ltd gain from the acquisition?

Reference no: EM133186104

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