Industries‚ Inc. 1. If you were Mr. Cizik of Cooper Industries‚ would you try to gain control of Nicholson File Company in May 1972? 2. What is the maximum price that Cooper can afford to pay for Nicholson and still keep the acquisition attractive from the standpoint of Cooper? [Treasury Bills yielded 5.6% in May 1972.] 3. What are the concerns and what is the bargaining position of each group of Nicholson stockholders? What must Cooper offer group in order to acquire its shares? 4. On the assumption
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to acquire Nicholson File Company in May 1972? Why? If I were Mr. Cizik of Cooper Industries‚ my decision would be trying to acquire Nicholson File Company. Why? For 3 reasons: 1. Nicholson File Company is a company that is financially healthy. With increase in sales in the last 5 years. Today is a very liquid company. Their liabilities are very well controlled. Opportunity cost reduction due to the merger and thus increases margins. 2. The opportunity presented to Nicholson File Company
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Kwai 1 Movie Review: Bridge On The River Kwai Were there parts of the movie that were confusing or hard to understand? o For example: a characters intention‚ sequence of events‚ etc? A part in the movie which was confusing was when Nicholson decided to assist the Japanese in building the bridge. He becomes so obsessed in building the bridge (which he regarded as a symbol of British efficiency and resourcefulness‚ which will be remembered for times to come) that he fails to identify
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the nature of the subject‚ this guideline has been applied with common sense‚ and reference is made to poetry in other languages or poets who are not primarily British where appropriate. Contents [hide] 1 The earliest English poetry 2 The Anglo-Norman period and the Later Middle Ages 3 The Renaissance in England 3.1
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heavy machinery manufacturer. Over time‚ Cooper Industries experienced significant growth through acquisitions. Nicholson File Company had been on Cooper’s shopping list for years as a company to acquire. What made Nicholson so attractive was its basic competitive strength. Cooper believe that acquiring Nicholson could reduce overcome its violent fluctuation of earnings. Nicholson had a 50% share for files and wraps with high quality line and strong name. Its hand saws and saw blades also had
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Following are the answers to the case: 1. If you were Mr. Cizik of Cooper Industries‚ would you try to gain control of Nicholson File Company in May 1972? Methodology We have taken the flowing steps for this analysis: * Determine the value of the Nicholson File Company as a whole. For this we have calculated the NPV. * Determined the value of Nicholson on a synergy‚ assuming after it has been acquired by Coopers. * Determine the value of Cooper Industries on after the synergy
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Aaron‚ Kelsi‚ Luther‚ Stephanie‚ Tom‚ Will Competition to Takeover and Opportunity for Cooper Valuation High Volatility Lead to Change in Acquisition Strategy Nicholson File Company Deal Structure Recommendation Presentation Outline 1. Background of Cooper Industries 2. Cooper Industries strategy 3. Target acquisition - Nicholson File Company 4. Other offers and what is now the opportunity for Cooper 5. Valuation 6. Recommendation Background - Cooper Industries Management Concerns High
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began expanding heavily into suburban shopping malls and doing less business through their mail-order catalog‚ which had been historically what had made them a well known company. The major brand that Sears holds that could have competed with Cooper/Nicholson is the Craftsman brand‚ which was registered by Sears in 1927 and was recently names one of America’s most trusted brands. From 1970-73‚ the US economy grew by an average of about 3.8% per year‚ and an average of 2.7% per year from 1974 onward.
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acquisition strategy for Nicholson File Company. An earlier attempt had failed in 1969. Again‚ in March of 1972‚ Cooper had to back away due to the bid by H. K. Porter Company because they were afraid that Porter may raid them if they learnt of Cooper’s attempts. Porter made an open offer of $42 per Nicholson share but were able to get only 133‚000 shares instead of the required 249‚000 shares for a majority stake. The current situation in May 1972 is that the Nicholson management has recommended
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Cooper Industries Case Study Introduction: Cooper Industries Inc.‚ is considering an acquisition of Nicholson File Company‚ a candidate for the company’s diversification program. Cooper CEO Robert Cizik approached Nicholson three years prior and was rejected‚ but the circumstances have changed and there is a real opportunity for Cooper to acquire Nicholson. Our team of analysts will evaluate the company’s financials to determine whether or not this is a smart acquisition for Cooper. Based off
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