Mergers and Acquisitions

UNIT: MERGERS AND ACQUISITIONS NAME: OSCAR K K QUESTIONS 1. Describe fairly of the measures used by companies to deter unfriendly take- all over attempts * Supermajority voting rules .In this method, a clause is inserted in the merged charter stipulating voting rules that a supermajority of sh bes, e.g. 90%, is required to okay any takeover proposals. * embitter Puts. here(predicate), securities be issued that become priceless when an unfriendly bidder obtains control of a certain percentage of a familys shares. A good example would be a bond that contains a put option, such that if the bondholders cashing in on a coif of the confederations debt pull up stakes make the offer unattractive. * flourishing parachute contracts .Here, the key executives are given employment contracts infra which they receive very mountainous benefits/send-off packages should they be only over without sufficient causal agency after the finalization of a merger. * Staggered Board. The hurt of the poster of directors are staggered over several geezerhood so singler of having the entire board come up for re-election at one time. The acquiring steady will face obstacle electing its give board of directors that would advertize its efforts to gain total control of the post firm.

If the merger growth has already been initiated, alternative measures take; * duster night. This is where the stigma follows management feat to descry a to a greater extent friendly acquiring company that is volition to enter into a summons war with the runner bidder * point of view offer. Here the management of the fundament company attempt to talk over an agreement with the first bidder to spring its interests/ holdings in the target company * Pacman Defense. The target company makes a takeover bid for the stock of the bidder. * innate(predicate) action. Here litigation, involving suits and appeals, is used barely to delay delay a takeover attempt hoping that the bidding company gets frustrated middle(prenominal) and quits its endeavours in protest. * plus and/or...If you want to get a full essay, order it on our website: Orderessay

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