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Business, 10.07.2019 05:20 Boogates7427

An acquiring firm, a, seeks to buy a target firm, t. the acquiring firm has better managers. the value of the target firm, if acquired by a, is $100 million. the value of the target firm under its current management is only $80 million. however, the managers of t can impose a poison pill that would reduce the value of firm t to the acquirer by amount p without providing any benefit to shareholders of t. what is the minimum value of p that would prevent a from acquiring t? what is the cost of this poison pill to shareholders of the two firms?

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An acquiring firm, a, seeks to buy a target firm, t. the acquiring firm has better managers. the val...

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