bootstrap earnings effect

preconditions:

• If an acquirer issues common stock at the current market price and uses the proceeds to acquire the acquiree's outstanding common stock.
• Acquirer's P/E (pre-merger) > Acquiree's P/E (pre-merger)
• 
  Acquirer's P/E (pre-merger) ≤ Acquirer's P/E (post-merger)
• Acquiree's acquisition price is the current price or lower.

Then the bootstrap earnings effect on post merger earnings (*) would most likely occur.

(*)Acquirer's EPS (post-merger) > Acquirer's EPS (pre-merger)