accretive merger & bootstrap

when an accretive merger occurs and there is bootstrapping of EPS, the total earnings are summed but the total shares increase at a rate of “less than 1 for 1”, resulting in a subsequent lower EPS. is it because of partial shares, cash for stock…etc?

Pacmand - by definition, mergers are stock-for-stock transactions, as opposed to an “acquisition” which may be cash for stock. The post-merger # of shares depends on the valuation of the two companies’ shares, so the ratio could be anything, 0.5-for-1, 2-for-1, etc. Thus, post-merger EPS can be higher or lower than pre-merger. In order for merger to be accretive though, post-merger EPS has to been higher than pre-merger.