Amp Essay
The analysis of majors issues of AMP Incorporated AMP Incorporated, one of the largest manufacturers of connector and interconnect device, started in 1941, experienced several rounds of fluctuation and grew up with the bloom of U.S. economy. Literally, AMP could be seen as the leader and the guideline of the electrical industry. However, there does not exist a forever winner in business world. The rapidly changing environment, complex condition and intense competition may influence the result of a decision dramatically and push the company into a dangerous abyss like the situation AMP Incorporated met after the financial storm in Asia-Pacific. If there are some other possible strategies AMP could make out to deal with the issue it met under
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Then, the conflict comes out between shareholders and management upon this purchasing. Representing by Hixon family, most of the stockholders of AMP Inc tend to agree with the tender offer. They are willing to sell the share they possess to Allied Inc. On the other hand, the management of AMP feels angry about the price per share provided by Allied Inc. They want their shareholders choose to trust their ability to returning value to AMP’s stockholders. After failing to persuade shareholders stop selling their stock to Allied Inc, the management has no choice but to conduct a self-tender to prevent their famous worldwide enterprise to be purchased at a cheap margin price. This self-tender offer further stimulated the dissatisfaction of the shareholders. As a result, they start to pressure the management of their company to stop fighting with Allied Inc. It is clear that the management of a company is hired by the shareholders and work for them to run the whole company. Their ultimate responsibility is to represent the interest of shareholders and maximize the value owned by those shareholders. However, in this case of purchasing, there is a difference between maximize the value owned by shareholders and just do what the shareholders desire. Simply following the direction of shareholders may not be a rational decision for the management of
Then, the conflict comes out between shareholders and management upon this purchasing. Representing by Hixon family, most of the stockholders of AMP Inc tend to agree with the tender offer. They are willing to sell the share they possess to Allied Inc. On the other hand, the management of AMP feels angry about the price per share provided by Allied Inc. They want their shareholders choose to trust their ability to returning value to AMP’s stockholders. After failing to persuade shareholders stop selling their stock to Allied Inc, the management has no choice but to conduct a self-tender to prevent their famous worldwide enterprise to be purchased at a cheap margin price. This self-tender offer further stimulated the dissatisfaction of the shareholders. As a result, they start to pressure the management of their company to stop fighting with Allied Inc. It is clear that the management of a company is hired by the shareholders and work for them to run the whole company. Their ultimate responsibility is to represent the interest of shareholders and maximize the value owned by those shareholders. However, in this case of purchasing, there is a difference between maximize the value owned by shareholders and just do what the shareholders desire. Simply following the direction of shareholders may not be a rational decision for the management of