THE NEW HAVEN PLANET

Merge between The New Haven Planet and The Hartford Gazette.
No opportunity to find another merger candidate.

1. What is your role?

I am representing The New Haven Planet

2. What is lowest/highest number you can justify and how do you justify it?
a. If we split the Synergies as they have proposed. These would be the lowest values for us as
they have captured the most value out of the merge.
New Haven Planet: $2,925,000
Hartford Gazette: $6,925,000
b. If we split them evenly, as we propose, the numbers should be as follow.
New Haven Planet: $4,925,000
Hartford Gazette: $4,925,000
The rationale behind this is that they are not going to capture any synergies if they don't merge with
us. We are the part that has higher production and overhead costs. Only by bringing Hartford
Gazette's advantages to our production facilities, they have a value that we can capture together.

3. What do you think is the fair outcome?

The fair outcome should be to capture the Total Synergies evenly. Only by bringing Hartford Gazette's
advantages to our production facilities, they have a value that we can achieve together. We propose
the fairest outcome, which is $4,925,000 (50%) for each part.

4. Where do you realistically expect the negotiation to end up? Note that this might or
might not be the same as the fair outcome.
The ZOPA is between $2,925,000 and $4,925,000 for us. They will try to push this number to the
extreme to give us a smaller part of the synergies, but it's important to make them understand that
without our inefficiencies, their advantages don't have any tangible value.

5. What is the lowest number that you would ever accept?

The lower number that I would ever accept is $3,078,125. This is basically the total synergies times
out market cap as a percentage of the total market cap.