(d) The current bid values the shares of Wragger at ￡19·07 million, compared to the current market value of ￡15·36 million, a premium of ￡3·71 million. The expected synergy is ￡15,570,000. If these data are accurate the bid could be substantially increased without the shareholders of Paxis suffering a fall in their expected wealth. In theory, the bid could be increased by an additional ￡11,860,000, or 148 pence for each existing Wragger share.There might also be strategic reasons for undertaking the bid, and the acquisition of Wragger might lead to future options that are not valued by the above analysis.The proposed acquisition is expected to result in substantial synergy, and to create wealth for the shareholders of both companies. The directors are recommended to proceed with the bid.