is considering a leverage recapitalization after a long history of conservative debt policy in an effort to make the company’s capital structure more stable and potentially increase the price of their stock. UST Inc. does not want to become a hostile takeover target‚ so they are taking on a large amount of debt and issuing dividends to shareholders. By issuing more debt and repurchasing stocks‚ they increase the dividends‚ which increases the leverage and the riskiness. Increasing the leverage and
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retail division. There were a number of characteristics that made Interco a coveted target for hostile takeover attempts. It was widely recognized by the market that their stock was undervalued. Outside buyers could therefore somewhat easily accumulate a majority of the companies stock and thus gain the associated majority voting rights due to this undervaluation. City Capital‚ the potential takeover bidder had already accumulated 8.7% of Interco’s stock. Furthermore‚ Interco had two lucrative industry-leading
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[Accessed 23 January 2011] 3 4. Europa‚ (2010). The direct effect of European law. [online] Available from: Europa. [Accessed 20 January 2011] 5 6. Europa‚ (2010). The position of Union law in relation to the legal order as a whole. [online] Available from: Europa. [Accessed 20 January 2011] 7 8. Europa‚ (2010). Non-discrimination principle. [online] Available from: Europa. [Accessed 20 January 2011] 9 10. Europa‚ (2010). Discrimination. [online] Available from: Europa. [Accessed 20 January 2011]
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Research Paper Following Simmel’s work on conflict‚ Lewis Coser focused on the functions of conflict through a functionalist perspective. He concluded that conflict was inclined to be dysfunctional only for social structures in which there was insufficient toleration or institutionalization of conflict. Highly intense conflicts that threatened to "tear apart" society tend to arose only in rigid social structures. Thus‚ what threatened social structures was not conflict as such‚ but rather the rigid
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to additional debt of $9 billion for Disney which reduced the company’s excess cash flows and was to stimulate internal change to increase efficiency. The takeover was financed by a mixture of stock and debt; Disney shares reached an all time high in the mid 90s and management must have believed that the shares were overpriced. The takeover did not involve any counter-bidding. The market showed its approval of the deal with an initial jump of 4 ¼ points in Disney’s shares to 62 7/8 and a rise
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University of Notre Dame Press‚ Indiana. 3. Knight‚ F. 1980‚ The Ethics of Competition and Other Essays‚ University of Chicago Press‚ Chicago. 4. Singer‚ P. 2000‚ Writings on an Ethical Life‚ Harper Collins Publishers‚ London. 5. Sirota‚ D. 2006‚ Hostile Takeover‚ Three Rivers Press‚ New York. 6. Wood‚ D. 1991‚ Corporate Social Performance Revisited‚ The Academy of Management Review‚ Vol. 16‚ No. 4‚ Pittsburgh. 7. Linda K.Trevino (2007). Managing Business Ethics: Straight talk about how to do it right
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the following mechanisms would be most likely to help motivate managers to act in the best interest of shareholders? (Points: 5) a. Decrease the use of restrictive covenants in bond agreements. b. Take actions that reduce the possibility of a hostile takeover. c. Have the board of directors allow managers greater freedom of action. d. Increase the proportion of executive compensation that comes from
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is Vodafone AirTouch going to face to complete its acquisition of Mannesmann? Who is going to be its most likely supporter? Who is going to resist? Why? 4. Why is Gent so eager to do the deal? Why is Esser fighting so hard? 5. What role do hostile takeovers play? In their absence what mechanisms perform the same function? How is the German Corporate Governance
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Case Studies in Finance: Managing for Corporate Value Creation Fourth Edition July‚ 2002 Robert F. Bruner Distinguished Professor of Business Administration Darden Graduate School of Business Administration University of Virginia Post Office Box 6550 Charlottesville‚ Virginia 22906 Email: brunerr@virginia.edu Web site: http://faculty.darden.edu/brunerb/ ABSTRACT: This book presents 46 case studies in finance‚ targeted toward upper-level undergraduates and introductory and intermediate-level MBA
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creating jobs. However‚ many affluent Americans used the money saved in taxes to purchase luxury products instead. Corporate mergers‚ or more bluntly corporate takeovers‚ spurred the deindustrialization of America. While deindustrialization eliminated many high-paying manufacturing jobs and left several Americans unemployed‚ the corporate takeovers that spurred the deindustrialization created a tremendous amount of wealth on Wall Street. Reagan also reduced funds allotted for public housing and psychiatric
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