1. The synergy number is calculated by the company. The synergy calculation is typically sub-divided into many departments - Marketing, R&D, Infrastructure, Overheads, IT etc. Then under each of these departments, the department heads will make an estimation on how much they will save if the 2 companies merged. Like for example, under infrastructure, they would have saved about $500 million by eliminating redundant fibre optic cables and routing equipment.
Jan 19 2013 07:43 PM