Mr. Yoshiyaki Murakami has secretly bought 11.49% of the shares. Assume that his tender offer for ¥3,456 per Toshiba Machine shares (to buy 43.82% of the shares for ¥25.9 billion) reflects a 19% premium over the price he paid on his initial stake. Assume also that the tender price reflects the true value of the company under Mr. Murakami. What would be Mr. Murakami’s financial gains from the takeover deal if it went through?

Mr. Yoshiyaki Murakami has secretly bought 11.49% of the shares. Assume that his tender offer for ¥3,456 per Toshiba Machine shares (to buy 43.82% of the shares for ¥25.9 billion) reflects a 19% premium over the price he paid on his initial stake. Assume also that the tender price reflects the true value of the company under Mr. Murakami. What would be Mr. Murakami’s financial gains from the takeover deal if it went through?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 12P

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