Striking a share swap ratio can be a delicate balancing act

IT IS tricky for an acquirer to come up with the "right" swap ratio for a merger with a target firm that would appease shareholders on both sides.

More so in a volatile market.

Viva Industrial Trust (VIT), being a target for merger with the Warburg Pincus-backed ESR-Reit, has seen its unit price fall 9 per cent from the start of February to S$0.86 on Tuesday, pummelled in part by the correction on Wall Street.