Hence‚ in recent times companies have started restructuring their operations around their core business activities through mergers and acquisitions. 2. TITLE OF THE PROBLEM :- It is true that dramatic events like mergers‚ acquisitions‚ takeovers‚ restructuring and corporate controls occupy the Indian business news papers almost daily. Further they have become central focus of public and corporate policy issues. Some assert that the activities of mergers and acquisitions represent
Premium Mergers and acquisitions
papers‚ we have studied for this purpose includes: 1. MERGERS AND ACQUISITIONS: AN EXPERIMENTAL ANALYSIS OF SYNERGIES‚ EXTERNALITIES AND DYNAMICS BY- RACHEL T. A. CROSON‚ ARMANDO GOMES‚ KATHLEEN L. MCGINN AND MARKUS NÖTH The ultimate goal of a takeover is to realize synergies‚ but how the synergies are divided between the involved companies is an open question that is critical for identifying winners and losers in mergers and acquisitions. Experimental method is used to investigate these questions
Premium Mergers and acquisitions
separation of a subsidiary from the parent by splitting the shareholders of the parent company’s stock from the shareholders of the subsidiary’s stock. Most split-offs are tax-free transactions and used to downsize a company or defend against a hostile takeover. In a split-off a new company is created to take over the operations of an existing unit or division and some of the parent company’s shareholders will receive the stocks in subsidiary or in new private company in exchange for the parent private
Premium Stock market Corporate finance Venture capital
in terms of returns on equity ratio (ROE) and returns on assets ratio (ROA). With the data acquired‚ we tested the pre- and post-takeover of e- banking performance variation between means using a standard statistical technique for independent sample at 5 percent level of significance for performance factors such as ROE and ROA. The study uncovered that the takeover of electronic banking has positively and significantly boosted the returns on equity (ROE) of Egyptian banks. On the other hand and
Premium Bank
Agency Costs of Free Cash Flow‚ Corporate Finance‚ and Takeovers Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory developed here explains 1) the benefits of debt in reducing agency
Premium Corporate finance
Group 12 A rcelor-Mittal : A takeover story Alina MUSTAFINA Mihir PATWARDHAN Alexis KUMUCHIAN Alexis POUGNANT 8 December 2010 Group 12 1. Company Background Mittal Steel Company was one of the world’s largest steel producers by volume‚ and also one of the largest in turnover. CEO Lakshmi Mittal’s family owned 88% of the company. Mittal Steel was based in Rotterdam but‚ managed from London. It was formed when Ispat International N.V. acquired LNM Holdings
Premium Steel Mittal Steel Company
shares‚ so this case is clearly a complete acquisition. The merger of Roche is clearly a horizontal takeover. Both firms focus on pharmaceutical research‚ where Roche is mainly focused on pharmaceuticals and mdedical diagnoses. Genentech is primarily focused on devevloping products based on gene splicing or recombinant DNA for diseases such as cancer and aids. The reason for a complete takeover could be that Roche is looking for the benefits of economies of scale‚ which is mentioned in Berk & DeMarzo
Premium ABN AMRO Biotechnology DNA
How do you evaluate the international competiveness of ManUtd after the takeover by Malcolm Glazer? Their International Customer Base Potential According to the case‚ ManUtd had developed a global fan-base of 100 million in 2009.Asia has the largest fan base at 50 million‚ followed by Europe with 35 million‚ Southern Africa with 8 million and the US with 7 million fans. The extent of their fan base provides significant international competitive potential and is evidence of the opportunity for
Premium Customer relationship management Customer service Competitiveness
Why was the Bolshevik take over in October and not earlier? A Bolshevik takeover in early 1917 would not have been practical; there were many events that would have prevented their takeover to be successful. However‚ by late 1917‚ the Bolsheviks success grew‚ leaving them in a position to takeover successfully. A revolution earlier on in 1917 would have been near impossible; the Bolsheviks lacked support. The party was in the minority within the Petrograd Soviet‚ leaving them at a political disadvantage
Premium Russian Provisional Government Vladimir Lenin Russia
The battle for the takeover of Gucci by LVMH‚ and efforts by Gucci management to defend against the intended takeover at all costs‚ is a classic example in the fashion goods industry. The case can be seen as mainly a battle between the two majority stakeholders in Gucci‚ namely the management of Gucci itself versus the other majority stakeholder LVMH. It can also be seen as the battle between two personalities‚ De Sole of Gucci and Bernard Arnault of LVMH‚ each determined to get their own way‚ regardless
Premium Stock market Shareholder Stock