Stock-cash deal - FRENCH SPEAKERS WELCOME
Hi everyone,
I am not sure if this is the right place to post it, but I have to answer the following question for an important assignment. It is in French, so French natives are welcome. However, I will translate it also into English.
La société A veut prendre le contrôle de la société C (A wants to acquire C)
A C
Nombre d’actions (# stocks) 100 000 50 000
book value of a stock 1 000 € 1 000 €
market value 3 500 € 2 150 €
A souhaite payer « en papier » en émettant des actions nouvelles remises aux ex-actionnaires de C, qui souhaitent bénéficier du régime de faveur des fusions. A dispose néanmoins d’une trésorerie lui permettant de payer jusqu’à 15 % de C en cash. (Basically, it's a mix of stock-cash-deal, where A can choose to pay up to 15% of C in cash).
a) Calculer le Ratio d’Echange (calculate the exchange ratio)
b) Calculer les termes d’échange théorique (calculate the theoretical terms of change???)
c) Proposer la solution la plus favorable pour A (What is the best/ most favourable solution for A?)
d) Toutes choses égales par ailleurs, calculer : (everything else equal, calculate)
- la dilution au contrôle, (stock dilution)
- la dilution à la valeur. (???)
I only managed to answer a) which is very easy. Can anyone help me on the other parts? Thank you very much!
Regards,
Qu
