(6) A merger of a slack-rich and slack-poor firm increases the firm’s combined value. However, negotiating such mergers will be hopeless unless the slack-poor firms’ managers can convey their special information to the prospective buyers. If this information cannot be conveyed (and verified), slack poor firms will be bought out by tender offers made directly to their shareholders. Of course,’ the six items stated just above depend on the specific assumptions of our model and may not follow in other contexts. We have only explored one of many possible stories about corporate finance. A full description of corporate financing and investment behavior will no doubt require telling several stories at once.