What happens to shares outstanding figure after takeover?

Hi

I have a question relating to the number of shares outstanding after a takeover. To keep things simple, lets forget about options for now.

Company A has 1 million shares currently outstanding. Company A wants to takeover company B which currently has 500 000 shares outstanding.

Company A also offers Company B 0.5 shares of Company's A share for every 1 share in Company B.

So are my calculations correct?

Company A Company B Company New Shares
1,000,000 + 500,000 + (0.5 x 500,000)

= 1,750,000 now outstanding (after takeover is complete)

Is this correct?

Thanks

If they are only offering 1 share of A for 2 of B then A will only need to create 250,000 new shares (half of B's 500,000)
so new total shares is 1,250,000

OK thanks Graham!