what is the value to MCI shareholders? 3. Merger arbitrage (or risk arbitrage) funds speculate on the completion of stock and cash mergers‚ typically buying the target and hedging the risk of the acquirer’s shares accordingly to exchange ratio in stock mergers. What positions would risk arbitragers take in this deal? How would their positions change if the board appears to favour Quest offer? 4. Consider the Worldcom-MCI merger and the Qwest-US West merger. Trying to avoid hindsight bias‚ should
Premium Management Hedge fund Stock
Minnesota Public Radio (Caramenico‚ 2012). Many dynamics in a healthcare organization can dramatically change when a merger occurs; these changes occur on the floor and among staff. The impact of merging two separate entities with different values and performance efforts can have long-term and short-term affects within the new organization. This paper is an effort to identify the impact a merger will have on the culture of the new combined organization‚ and how to ensure that the combined staff will work
Premium Management Leadership Organization
Chapter 28 Mergers and Acquisitions 28-1. What are the two primary mechanisms under which ownership and control of a public corporation can change? Either another corporation or group of individuals can acquire the target firm‚ or the target firm can merge with another firm. 28-2. Why do you think mergers cluster in time‚ causing merger waves? There are many competing theories as to why this is so. They generally fall into two camps: either stock market valuations drive
Premium Stock market Stock Mergers and acquisitions
CASE STUDY ARCELOR-MITTAL MERGER: CHALLENGING INTEGRATION OF TWO STEEL GIANTS’ ORGANIZATIONAL IDENTITIES Preamble In the aftermath of one of this century’s most remarkable mergers‚ we find two different cultures‚ two different worlds‚ thrown into one of history’s largest corporate integrations. On the one hand‚ there is Mittal Steel - the largest producer of steel in terms of volume. Despite the fact that Mittal steel is based in Netherlands‚ it is perceived that the company is non-European because
Premium Arcelor Mergers and acquisitions Mittal Steel Company
Newell Company: The Rubbermaid Opportunity In October 1998‚ Newell Company was considering a merger with Rubbermaid Incorporated to form a new company‚ Newell Rubbermaid Incorporated. The agreement would be through a tax-free exchange of shares valued at $5.8 billion. Newell had revenues of $3.7 billion in 1998 across three major product groupings: Hardware and Home Furnishings‚ Office Products‚ and Housewares. Rubbermaid is a renowned manufacturer of a wide range of plastic products ranging from
Premium Mergers and acquisitions
Bank (PNB) was in the talks for a merger of both companies. This merger will make the biggest bank in the country combining the assets of the two to a sum of 33 Billion USD. The deal didn’t transpire though because as of the December 15 deadline‚ no talks were settled. This made Banco de Oro (BDO) the biggest bank as of late. What interests me is what will happen if the merger will continue? There are 5‚000 employees in PNB while BPI has 12‚000 employees. If the merger will continue‚ there will be thousands
Premium Central bank Game theory Mergers and acquisitions
culture integration for the newly merged firm. Finally‚ though the premium overweighs the synergy effects‚ we believe the competitive advantage of combined firm would benefit its shareholder in the long run. STRATEGIC RATIONALE The value creation by merger of InBev and Anheuser-Busch fits well the synergy analysis framework. First‚ from the Benefit-Cost analysis‚ the synergy comes from the increase in synergy and saving on overlapped cost. From revenue increase perspective‚ we can expect InBev and
Premium Mergers and acquisitions Economics
unfamiliar cultures make up an individual’s Cultural Intelligence (CQ). The aim of this paper is to illustrate the concept of CQ through the analysis and evaluation of the case of the merger between Kraft and Cadbury. Contents CQ: Cultural Intelligence 1 Components of Cultural Intelligence 1 Cultural Intelligence in Mergers and Acquisitions 2 Kraft Takes Over Cadbury 2 Cadbury 2 Kraft Foods 2 Pitfalls of Poor Cultural Intelligence 3 Evaluation 3 Summary 4 Exhibit 1 5 Exhibit 2 6
Premium Mergers and acquisitions Culture The Culture
E-learning week‚ Useem (1998)‚ will help answer the questions. 1. What are the relationships among stock markets (share prices)‚ large-scale layoff‚ and mergers and acquisitions as presented in the movie? James Salinger’s tactic is to downsize the company to boost the share price to avoid a merger or acquisition. Salinger believes that a merger or acquisition will break down the company. The intention with the large-scale layoff is to make investors believe that the company will be more efficient
Premium Stock market Stock Mergers and acquisitions
The 8th Addiction: From Effectiveness to Greatness. New York‚ New York: Free Press Davenport‚ J.‚ & Barrow‚ S. (2009). Employee Communication During Mergers and Acquisitions. New York‚ New York: Gower. Kandler‚ D. (2011). Helping employees cope with corporate downsizing‚ merger or Acquisition. Project Management Journal‚ ()‚ 24-25 Mergers and Acquisitions. (2009). QFinance‚ ()‚ 1. Retrieved from http://www.qfinance.com
Premium Mergers and acquisitions Management