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Unformatted text preview: to gain 50.1% control, you will only receive $85 a share. If you do tender, the price you will receive will be no worse than $85 a share and can be as high as $125 a share. Depending on the number of shares tendered, you will receive one of the following prices. If only 50.1% tendered, you will get $125 per share. If the shares tendered exceed 50.1% but less than 100%, you will get more than $105 a share. If all 60 million shares were tendered, you will get $105 per share: ( 29 ( 29 85 $ 60 30 125 $ 60 30 + It is clear that, in the above 3 cases, when you are not sure about whether US Steel will succeed or not, you will be better off to tender your shares than not tender. This is because at best, you will only receive $85 per share if you choose not to tender. B-188...
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This note was uploaded on 06/15/2008 for the course FIN 504 taught by Professor Na during the Spring '08 term at University of Texas at Austin.
- Spring '08