Suppose that another CD-ROM media company is sold during
the negotiations between GWM and GGT and that the P/E ratio paid for the
comparable transaction was higher than what GWM was offering for GGT. How would
this information affect negotiations? What would Chang’s likely position be?
How could Durand counter Chang’s arguments? Assuming Durand still wanted to
complete the transaction, how might he have restructured the purchase price to
make it acceptable to both firms’ shareholders?