Can you give an example calculating the Mergerstat Control Premium?
As an example, let’s use “Optical Coating Laboratory Inc.”; SIC code is 3827. • Unaffected price is $119.25 per share • Purchase price per share is $400.55 • Control Premium is 2.36 The acquiror paid a premium over the Mergerstat unaffected price per share of 2.36 TIMES ABOVE the Mergerstat unaffected price per share. With this example, the acquiror paid $281.43 per share (2.36 X $119.25) above the unaffected price of $119.25 per share, or a total price of $400.55 per share ($281.43 + $119.25). The key phrase is TIMES ABOVE the Mergerstat unaffected price. The acquiror paid 2.36 TIMES ABOVE the Mergerstat unaffected price or 3.36 TIMES the Mergerstat unaffected price. It is more practical to express this number in percentage since that is the standard way of showing premiums: in this example the control premium would read 236%.
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