You are considering acquiring Recor, a firm rumored to have developed an effective gene therapy for diabetes

You are considering acquiring Recor, a firm rumored to have developed an effective gene therapy for diabetes. The value of Recor depends on this therapy. If the therapy is effective, Recor is worth $100 per share; otherwise, Recor is worth no more than $20 per share. Your firm’s management and marketing strengths should increase the share price by at least 50 percent in either case. You must make an offer for Recor now, before the results of clinical trials are in. The current owner of Recor will sell for the right price. Make an offer for the firm. Explain why you think your offer makes sense.