Why in the world would the gain to the target for an ALL STOCK offer include the CASH offer price? To me, there are 3 possible values listed for Debian- the 90mm (which should only be applicable to the cash offering), the 78mm and the 85mm. Did anyone else get confused on this? Is there an explanation for this?
I get how they said that the Value of the combined entity is the “post cash acquitision of Ubuntu”, but why would we assume that same value if they were to take the stock offering. I figure it would be the new value of the stock is the combined entity - synergies / 8mm. I know 8mm is the new number of shares, and then you would take that stock price and multiply it times the new number of shares and subtract the original value to get the value to the target. Please help!