control of Robertson tool in May 2003. The synergy after acquiring as well as profits which would be gained after the merger will be more than the cost of the merger. Monmouth had earlier acquired Dessex. It acquired a quality product line‚ an established distribution system of 15000 retail hardware stores spread across United States as well as in Canada and Mexico. The Acquisition of Dessex provided a solid base for the other two companies which were added‚ Keane and Kroll. Keane was highly profitable
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After the merger‚ both the Oracle and PeopleSoft share prices rose by 10%. One of such benefits is increased capital base of the new company. Before the merger‚ the revenues of Oracle ad PeopleSoft were $10.2 billion and 3 billion respectively. The merger of these two companies would enhance the revenue base of the new company. This made Oracle to gain an advantage in relation to market capitalization in relation to its competitors. In line with the objective of the merger‚ the size of these
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Mergers & Acquisitions (M&A) in Indian Telecom Industry Submitted by: Akshat Mittal NSIT‚ Delhi 1. Introduction: Indian has achieved an overall teledensity of 67% and rural teledensity of 31%. Indian telecom industry is fast becoming an attractive destination for foreign investors and is experiencing consolidation of operations. It has witnessed several multi-billion dollar M&A deals ever since the telecom industry was opened to the private players in 1995. In the Indian
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spread. If the merger is successful‚ the arbitrageur captures the arbitrage spread. However‚ if the merger fails‚ the arbitrageur incurs a loss. There are two basic types of mergers‚ cash mergers and stock mergers. In a cash merger‚ the acquiring company offers to exchange cash for the target company’s equity or assets. In a stock merger‚ the acquirer offers its common stock instead of cash. The arbitrageur ’s strategy depends on the form of merger. In cash merger
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Corporate Restructuring: Corporate restructuring is one of the most complex and fundamental phenomena that management confronts. Each company has two opposite strategies from which to choose: to diversify or to refocus on its core business. While diversifying represents the expansion of corporate activities‚ refocus characterizes a concentration on its core business. From this perspective‚ corporate restructuring is reduction in diversification. Corporate restructuring is an episodic exercise‚
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Accounting Fraud at WorldCom Executive Summary WorldCom is a telecommunication company that has been found by Bernard Ebbers‚ a Canadian. Growing rapidly through mergers and acquisition strategy‚ Ebbers handled largest takeover in US history by acquiring MCI‚ the nation’s second largest long distance company. The aggressive acquisition strategy required issuing a lot of debt‚ which eventually cause problems that attract the company to do accounting frauds. The main issue in this case is cooking the
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either firm. Describe the types of business combination that might be available for the two firms. Include ideas like merger‚ consolidation‚ acquisition‚ and friendly and hostile takeovers. How would Highland’s management get started? Do the relative sizes of the two firms have any implications for the kinds of combination that are possible or likely? This could be a merger or a consolidation. Because the sizes aren’t too different‚ a consolidation seems most reasonable. Similarly‚ the sizes
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transitioning individuals‚ teams‚ and organizations to a desired future state. In this assignment I will be covering Rollin and Christine Glaser’s (1992) five elements to improve team effectiveness‚ IT management competencies‚ reasons for mergers and acquisitions in reference to South African businesses and roles leaders should play during the change process. In the aim to provide one with a better understanding of and insight of change management. Question 1 Rollin and Christine Glaser (1992)
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export trading company to a coordinator of value-added services across the whole supply chain in a global‚ open manufacturing circumstance. Its corporate culture has enabled it to keep pace with the current trend of global business. The successful acquisitions and the venture capital make the company grows stably and rapidly. However‚ the company now faces some challenges coming from Asian financial environment and related policies. High sensitive of the change in macro environment is essential for the
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As pointed out previously‚ Huffman Trucking has experienced tremendous growth over the past few years. Our huge trucking fleet and large number of employees exceed the usual numbers for a privately held trucking company. The growth of our company has become so significant that we must now face the issue of expanding our business. Even though our expansion can be done in many ways‚ our financial team has narrowed down our expansion options to becoming a publicly shared company (through an IPO)‚ acquiring
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