When Whelan presents Zenith’s proposed takeover to the board of directors the following day,
one of the directors made the following statements:
Which is one the most accurate?
-
Although I am certainly in favor of this takeover, I think we would achieve the greatest
value from the acquisition if we offered more stock and less cash. -
If Zenith does not realize the potential synergies of this acquisition in the next five years,
I suggest a “spin-off” as a means to recover some of the money lost in this venture. -
A positive initial market reaction will confirm that we did not overpay for Zenith.
Why is it 3 and not 2?