How to evaluate the 1st statement made by the member of the BOD? regarding achieving the greatest value
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So BOD is saying that instead of giving 23 dollars per share as cash we should give less cash and give more share in against of consideration.
BOD prefers giving shares in case where even they are not sure that all synergy will be realised and so that their risk gets mitigated and also cash reserves of the company does not get lossen up.
The statement is an incorrect one.. How to infer it?
Definitely its an incorrect one because if the BOD was sure that company will achieve synergies in future, then it will offer cash and will not dilute wealth of its own shareholders. So if they are saying its better to issue shares than cash payments, it says that even they are not sure about company prospects in future.