M10-01-MergerPerformance

Model10-01ABidder/TargetDealTermsPre-MergerBidderTargetTotalBidderTargetSharePrice$72.00$75.25SharesOutstanding(million)2,431780TotalMarketValue(billion)$175.0$58.7$233.774.9%25.1%ExchangeTerms1.32for1Post-MergerNumberofShares(million)24311030346170.2%29.8%PremiumAnalysisPaidtoTarget(billion)=BidderSharePricexExchangeTermsxTargetShares=$72.00x1.32x0.78=$74.1Premium(billion)=$74.1-$58.7=$15.4PremiumOverTargetValue=$15.4/$58.7=26.3%PremiumOverCombinedPre-MergerValue=$15.4/$233.7DollarAmountsPercentage=6.6%Model10-01BTestsofMergerPerformancePremergerMarketCapsOwnershipProportionsBidder$175.074.9%Target$58.725.1%Total$233.7100.0%PostmergerCombinedValue$283.3PaidtoTarget$74.1Remainder$209.2BidderPremerger$175.0GainfromMerger$34.1PortiontoBidder70.2%$24.0PortiontoTarget29.8%$10.2PlusPremium$15.4TotalGaintoTarget$25.6