@Road Being Acquired by Trimble Navigation

Zelmo Zeroman owns 500 shares of stock in @Road Inc., but his investment is changing because @Road is being acquired by Trimble Navigation Ltd.

   "Trimble Navigation Ltd., which makes navigation systems and 
    software based on GPS satellite technology, said it will buy 
    @Road Inc. for about $496 million, or $7.50 per share."

   "Under terms of the deal, @Road shareholders will receive about 
    $330 million, or $5 per share in cash, and the remaining $2.50 
    per share in a mixture of cash and/or stock -- to be determined 
    by Trimble."

Zelmo needs help figuring out what his @Road investment will be like after the Trimble deal closes.

Exercises
  1. Zelmo will receive $________ in cash.

  2. Assuming the non-cash part of the deal is an all stock transaction, Zelmo will have $______ invested in Trimble Navigation.

  3. On 2/8/2007, TRMB closed at $55.73 per share. Using the answer from the previous exercise and the given TRMB stock price, Zelmo will own _________ TRMB shares. [rounded down to the nearest whole share]

  4. Using the non-rounded answer from the previous exercise, Zelmo will receive $_______ in cash for the fractional TRMB share.

Update::2007.02.17

The following was contained in a Trimble Navigation press release.

   "Trimble Navigation Ltd., a maker of navigation systems, 
    said Friday it completed its acquisition of @Road, a 
    manager of mobile resources, for $493.1 million."

   "Shareholders of @Road will receive $5 cash and 0.0447 
    shares of Trimble stock for each outstanding share of 
    @Road. The acquisition was announced in December."

TRMB and ARDI closed at $55.96 and $7.49, respectively, on 16 February 2007.


Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 09 February 2007

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This work is licensed under a Creative Commons License.