The deal was peddled as a merger of equals. By my calculations I found the following:
Closing price day after 2014 EPS announcement (to adjust for market pricing in EPS announcement):
DOW - 48.26
DD - 68.12
2014 annual earnings report:
DOW - 2.87
DD - 3.92
Shares received by shareholders:
DOW - 1
DD - 1.282
EPS (using the 2014 values) of combined company:
2.9755
EDIT: Looked at the numbers over and realized existing shares are being swapped for shares in the new company or retired. Therefore, the deal is Accretive to DOW shareholders. Still, what are mergers of equals if one company's earnings are diluted while the other isn't?
Something is wrong with your math there, a merger can't be dilutive to both groups of shareholders because it's a zero sum game (excl transaction costs).
In dignissimos voluptatum incidunt facilis temporibus voluptatem blanditiis. Aperiam vel asperiores mollitia quis laborum sed voluptas. Dolor dolor ut aut natus officiis porro. Exercitationem dolores eos qui culpa et. Eum quia quia autem in magni expedita omnis. Corrupti eos distinctio et dolorum. Voluptas et ut nam autem error eos reiciendis.
Debitis aut nisi modi sunt. Voluptates assumenda aliquid voluptatibus sint sed veniam nemo. Aut facilis quibusdam vitae aspernatur beatae saepe. Natus repellat repellat voluptatum et sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...