No company has ever announced a merger with "this is a value-destroying transaction that we're launching because we want a bigger fiefdom and don't really know how to build value." That said, while investors are wise to be very skeptical about the synergies companies promise with merger announcements, Tuesday's announced merger between Orbital Sciences (ORB) and Alliant Techsystems (ATK) looks like a really good opportunity to build a stronger business.
As I had valued Orbital at around $31 per share in February, and I calculate a value of about $31 in Alliant's offer for the company, I can't say that this is an unfair deal for either side. What's more, for those shareholders willing to hold on and see how...
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