Mergers and Acquisitions

UNIT: MERGERS AND ACQUISITIONS NAME: OSCAR K K QUESTIONS 1. Describe moderately of the measures employ by companies to discourage unfriendly take-over crusades * Supermajority voting rules .In this method, a clause is inserted in the corporate charter stipulating voting rules that a supermajority of shares, e.g. 90%, is required to approve any takeover proposals. * poison Puts. Here, securities are issued that become valuable when an unfriendly bidder obtains get over of a certain percentage of a beau mondes shares. A good example would be a bond that contains a put option, such that if the bondholders cashing in on a demarcate of the connections debt will make the offer unattractive. * booming parachute contracts .Here, the key executives are given employment contracts under which they receive very large benefits/send-off packages should they be entirely over without sufficient cause after the finalization of a merger. * Staggered Board . The hurt of the board of directors are staggered over several years so singler of having the entire board come up for re-election at one time. The acquiring firm will face hindrance electing its give board of directors that would further its efforts to gain total control of the post firm.

If the merger process has already been initiated, alternative measures allow in; * duster night. This is where the stigma companys management get wind to descry a more friendly acquiring company that is volition to enter into a bidding war with the inaugural bidder * point of view offer. Here the management of the target company attempt to talk over! an agreement with the first bidder to get its interests/ holdings in the target company * Pacman Defense. The target company makes a takeover bid for the stock of the bidder. * intelligent action. Here litigation, involving suits and appeals, is used just to delay delay a takeover attempt hoping that the bidding company gets frustrated halfway and quits its endeavours in protest. * Asset and/or...If you want to get a full essay, order it on our website: BestEssayCheap.com

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