Takeover Problems

Topics: FTSE 100 Index, Companies formerly listed on the London Stock Exchange, Royal Bank of Scotland Group Pages: 2 (415 words) Published: March 16, 2013
1. AOL - Time Warner
$164 billion deal in 2000. In 2002 reported a $99 billion loss with $45 billion write-down. Destroyed 97% of shareholder value.
2. Invensys - Baan
Invensys paid Euros 762 million to buy Baan in 2000. Baan was sold in 2003 for $130 million.
3. Taylor Woodrow - Wimpey
Taylor Woodrow bought Wimpey for £5 billion in 2007. Since then £4 billion has been wiped off Taylor Wimpey's share price.
4. HSBC - Household
HSBC bought Household for $15 billion in 2003. By the end of 2007, HSBC had written down $17.2 billion on Household's value.
5. Quaker Oats - Snapple
In 1993 Quaker paid $1.7 billion for Snapple, outbidding Coca-Cola in the process. In 1997, Quaker sold Snapple for $300 million.
6. BMW - Rover
In 1994, BMW bought an 80 per cent of Rover for £800 million from British Aerospace, and a 20 per cent holding from Honda. After investing millions, it sold the whole company back to the 'Phoenix Four' for £10 in 2000. Rover went bust 2005.

7. Royal Bank of Scotland - ABN Amro
The Royal Bank of Scotland and two other European banks paid Euros 71 billion for part of the Dutch lender ABN Amro, which RBS's arch-rival Barclays had agreed to buy. RBS may have to write-down up to £45 billion on the value of ABN-Amro and RBS is now owned by the UK government.

8. France Télécom - Orange
In 2000, France Telecom bought Orange for Euros 45 billion. The stake has been written down several times since.
9. Daimler - Chrysler
Daimler paid $36 billion in 1998 to buy Chrysler. In 2007 80 per cent of Chrysler was sold to Cerberus for $7.4 billion. In 2009 Chrysler needs US government bail-out.
10.British and Commonwealth Holdings - Atlantic Computers 1988 After £434 million takeover, both companies were bankrupt within 12 years. 11. Morrisons and SafewayThe takeover, in 2005, of Safeway Supermarkets by Morrisons has destroyed a third of the merged company's value and the whole process has raised questions...
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