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The firm Amble is entirely financed by equity. It has 4 million shares and a...

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The firm Amble is entirely financed by equity. It has 4 million shares and a current share price of $8. It is public knowledge that the firm's current management is inefficient and the firm's share price would be $11 if well managed. Amble's shares are owned entirely by small shareholders. The administrative costs to acquire Amble would be $0.14 million. An acquirer can gain control of the firm and manage it efficiently if they can purchase at least 51% of its shares. Assume the market is semi-strong form efficient. a) Identify and briefly explain an alternative strategy Lawson might use to implement an efficient takeover of Amble. (100 words) 14 marks) b) How might the existence of a large shareholder potentially affect a firm's market value? Explain. (130 words) 15 marks) (Total = 25 marks)

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