This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.
2. Why did Bollenbach not raise the bid between January and July?
Bollenbach probably thought that there was no need to raise the bid between January and July because he thought there was a low likelihood of competition from other potential bidders.
3. What is the stand-alone value of ITT's equity? How did this compare to ITT's historical market value? What was ITT's "break-up" value? What was ITT's value to Hilton?
Stand-alone value: From the same Exhibit above, ITT’s intrinsic value of equity without synergies is $36.04 to $73.55 with a best guess of $58.07
Historical market value: ITT’s pre-tender-offer share price is from $43 to $46 per share
Break-up value: $61/share
ITT’s value to Hilton (with synergies): ranges from $43.77 to $84.73 with a best guess of $67.94...
This is only a preview of the solution. Please use the purchase button to see the entire solution