Overview of the Issue In the scenario given‚ without an alternative‚ OCF probably has to initiate changes in its capital structure to drive off hostile takeover attempts from Wickes. There are a few a ways the capital structure can be changed‚ i) recapitalize by retiring equity with debt (swap)‚ ii) simply assume more debt‚ iii) issue more shares‚ or iv)buy back shares. An under levered firm can increase its debt ratio by borrowing money and buying back stock or paying a super dividend to its stock
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Mannesmann vs. Vodafone On A Hostile Takeover December 2000 Martin Marinschek‚ Student ID 9803246 Abstract This paper summarizes the proceedings of the largest merger in the history of the telecommunication business‚ including the two players Vodafone and Mannesmann. Analyzing the history of the two companies‚ the reasons for the merger‚ the merger itself and the outcome of the takeover‚ as well as the impacts on society‚ economy and legislative are the major concerns
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products. Oracle started then to‚ over the years‚ acquire smaller companies‚ either to continue the development of their core business (database systems) or to be able to enter into new areas that would complement their current offer. On that target screening they found Sun Microsystems. Being already dominant in the software area‚ Oracle saw the perfect opportunity to expand and enter in the hardware and networking space that already were Sun´s areas of expertise. With this deal Oracle would be able
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acquisition is of 2 types i.e. friendly or hostile. If a purchase is perceived as a friendly or hostile depends on how it is communicated to and received by the target company’s board of directors‚ shareholders and employees. M&A deal communications take place in a so-called ’confidentiality bubble’ whereby information flows are restricted due to confidentiality agreements. In a friendly transaction‚ the companies cooperate in negotiations; in a hostile deal‚ the takeover target is unwilling to be bought
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ISSN 1045-6333 THE SHAREHOLDER WEALTH MAXIMIZATION NORM AND INDUSTRIAL ORGANIZATION Mark J. Roe Discussion Paper No. 339 11/2001 Harvard Law School Cambridge‚ MA 02138 The Center for Law‚ Economics‚ and Business is supported by a grant from the John M. Olin Foundation. This paper can be downloaded without charge from: The Harvard John M. Olin Discussion Paper Series: http://www.law.harvard.edu/programs/olin_center/ SHAREHOLDER WEALTH MAXIMIZATION JEL Class: D42‚ G32
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Alternative Concepts of Consolidated 1.3 Business Combinations Financial Statements 1.4 Business Combinations: Historical Perspective 1.10 FASB’s Conceptual Framework 1.5 Terminology and Types of Combinations 1.11 FASB Codification Project 1.6 Takeover Premiums 1.12 Appendix A: Evaluating Firm Performance 1.7 Avoiding Pitfalls before the Deal 1.13 Appendix B: Researching the FASB Codification INTRODUCTION This chapter introduces you to a fascinating topic which will occupy a
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Agency Costs and Corporate Governance I Introduction Before analysing problems that occur when institutional ownership and control are separated‚ it should be outlined why institutions exist at all. Therefore‚ chapter two examines why organizations occur in economy. Chapter three addresses the agency problem‚ based on this organization. Chapter four addresses the common ways to solve the agency problem and chapter five gives a comparison over the three most important corporate governance systems
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Transcript of Cooper Industries‚ Inc Cooper Industries‚ Inc Cooper Industries‚ Inc 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
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Economics 20 (March 1988): 431-460. 25. S. Aligood and K.A. Farreli‚ "The Effect of CEO Tenure on the Relation Between Firm Performance and Turnover‚" Journal of Financial Research 23‚ no‚ 3 (fall 2000): 373-390‚ 26. J.R. Franks and C. Mayer. "Hostile Takeovers and the Correction of Managerial Failure‚" Journal of Financial Economics 40‚ no. 1 (January 1996): 163-181‚ 27. P Behr and A. Witt‚ "Visionary ’s Dream Led to Risky Business‚" Washington Post‚ Sunday‚ Juiy 28‚ 2002‚ sec. A‚ p. 1. 28. Ellsworth
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Berle‚ A. and G. Means (1932)‚ The modern corporation and private property‚ MacMillan‚ New York. Bertrand‚ M. and S. Mullainathan (1999)‚ “Is There Discretion in Wage Setting? A Test Using Takeover Legislation”‚ The Rand Journal of Economics‚ 30‚ pp Bhagat‚ S.‚ A. Shleifer‚ and R. W. Vishny (1990)‚ “Hostile Takeovers in the 1980s: The Return to Corporate Specialization”‚ Brookings Papers: Microeconomics‚ 1-72. Bianchi‚ M.‚ M. Bianco and L. Enriques (1999)‚ “Pyramidal groups and the separation between
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