IMO the offer will fail because it's paper for paper, and it will be seen in retrospect as a shot across the bows for matters going forward. A true merger could work if the parties were to get together and hammer out an exchange, but the proper relationship would be essential - i.e. a marriage between friends - and that is certainly not the case here. The point has not been reached where the parties should/must get together. NOT will let the term expire IMO - sweetening the pot would be a foolish move - everything to lose with little likelyhood of acceptance