The Acquisition of Consolidated Rail Corporation (A) CASE 4 Group 3: Antonio Carlos Teles Caleia #1028 Federica Carcani #2258 Edoardo Covicchio #2259 Leandro José Pereira Domingues #1023 Francesca Romana Gambini #2260 Mergers‚ Acquisition and Restructuring (TB) Prof. Josè Neves de Almeida Q1. The rationale behind the intention of CSX to buy Conrail is mainly to anticipate a proposal from the other big player in the market Norfolk Southern. Both CSX and Norfolk Southern have basically the same
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References: Answers.com. Leveraged Buy Out. Retrieved July 17‚ 2005 from http://www.answers.com/topic/leveraged-buyout High yield or "junk" bonds. Retrieved July 18‚ 2005 from http://www.finpipe.com/bndjunk.htm http://www.investopedia.com/university/mergers/mergers4.asp. Retrieved July 16‚ 2005. Ross‚ S.‚ et. al. (2001)
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times and premium service (Exhibit 1). Friner and her staff had gone over the proposals and agreed that BNYCF was among those that offered the best terms. Now‚ she had to decide whether Amtrak should finance the equipment purchases using BNYCF’s leveraged-lease proposal or borrow money and purchase the equipment on its own. Company Background In 1970‚ the U.S. Congress created the National Railroad Passenger Corporation (Amtrak) to ensure that "modern‚ efficient intercity plissenger-rail service would
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1. Prepare to explain the implications of case Exhibit 1 (Paige Simon’s first task). Based on that exhibit‚ is terminal value (TV) a material component of firm values? From the exhibit‚ we can find the PV of five years’ dividends is small part of the market price of the stock. In my opinion‚ we buy a stock then get dividend periodically‚ which like buy a bond. The coupon payment is dividend and the face value is terminal value. The bond value is determined by the terminal value mostly. So the stock
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.Management theory & principles November 20‚ 2011 Bed Bath & Beyond VS. Linens ‘n Things The two companies I have chosen to research and dissect on why one has had great success and one has had great failure are Bed Bath and Beyond and Linens ‘n Things. When looking at both companies they seem to be similar to one another with the items they sell‚ the store layout and policies so why it that one failed and one is still standing. Managements job is to oversee others so their activities are
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will eventually turn around along with the stock price. RECOMMENDATION: Based on our valuation of Dell‚ along with weighing the pros and cons of our due diligence findings and deal performance‚ we recommend that Dell shareholders vote yes on the buyout offer. We believe that the $13.75 per share is a fair offer that falls within the relevant range of Dell’s true value. Mr. Dell’s costly proposal to turn Dell into an IT services and solutions company comes with a high implementation risk that will
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Executive Summary Gucci Group is a luxury goods retailer focusing on improving their market share while producing high quality fashionable items. Initially‚ Gucci’s poor business strategy and internal family conflict directly resulted in decreased sales and net income. When Investcorp took control of the company‚ Gucci regained their success through quality management and acquisitions. Gucci’s product line now includes a large range of products. We would like to continue Gucci’s success and believe
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was a thriving enterprise by 1965‚ when annual sales amounted to about $8 million. The company needed backing to expand‚ however‚ so it sold out to Buffalobased conglomerate Houdaille Industries Inc. Houdaille was in turn purchased in a 1979 leveraged buyout (LBO) led by Kohlberg Kravis Roberts & Co. By 1982‚ when debt‚ competition‚ and a ickly machine-tool market had battered Burgmaster badly‚ Houdaille went
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Linear Technology Linear Technology is a corporation that designs‚ manufactures‚ and markets integrated circuits and has also been called "one of the tech industry’s most profitable companies” by Forbes magazine in 2010. This report will examine the company’s dividend policy and our group recommendation for Linear Technology moving forward. Linear Technology (LT) does not have any debt in the company. Based on M&M proposition this means that LT can increase its debt to maximize the
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Introduction With the accelerated internationalization‚ a great number of strategies and tactics are adopted by either multinational companies or regional firms in order to obtain global market shares as much as possible. Mergers and Acquisitions (M&A) are one of methods for a corporation to grow and expand its global business. Globally‚ the value of M&A increased by 19%‚ up to USD 2.25 trillion in 2010‚ with amount of USD378 billion contributed by the emerging markets contributed. (http://www
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