38 A company is comprised of two operating segments, Segment A and Segment B. The company trades at an EV of €785 million, with an implied conglomerate discount of €100 million based on peer valuations. Financial information on the two segments is provided below:

• Peer median EV/EBITDA multiple for Segment A: 5.0
• Segment A EBITDA: €50 million
• Segment B EBITDA: €80 million

The company receives a bid for Segment B, valuing it at an EV/EBITDA of 5.4. The bid: