What price will you pay?

Company A and B are in the same business, with company A having a 2 time market share than company B. The nature of the industry is such that there are only two firms, A and B.

Company A's stock is currently trading at twice the price as that company B. Company B is currently on a new product project, which if successful - would mean Company B's stock going up by 100%, i.e. doubling. If the project is unsuccessful, company B's share price will halve as a huge amount of resources have been put on the same and losses will be considerable.

Also as a result of a "successful" new product project, company A's market share will reduce from a 2:1 share over company B to a 1:1 market.

Company A is valuing the business of company B for quite sometime. Now on Dec 19th 2005, we have the following information. The project has be "________". This information (success / unsuccessful) is only available to company B executives which they wil not tell company A until the deal is signed. What should company A do?

Some questions you may want to answer -
a) Should company A acquire company B?
b) If yes, at what price?
c) Best ways of dealing with company B to reduce risks/maximize profits?