A Sample Of Indian Acquisitions

The weekly performance of IBM stock presented a contestant growth. One highlight of the falling of stock price in the 6th week in the investment period was when IBM presented the 3rd quarter financial report. The investors weren’t satisfied with the profit report which they expected to be better especially when other IT companies were doing well in the 3rd quarter. One mistake I made was that I didn’t follow closely to the financial report of the company; therefore, I missed the peak of the stock price. From this experience, I learned that financial reports and current news are important indicators of the stock price. By following closely to the current event and analyzing the financial report, investors can maximize the profit and also become more familiar to the market.

Innovation in offerings, Branding, Research and Arbitrage are his forte. He has more than 20 years of wide and rich experience in Equity and Commodity Broking and Arbitrage. He is an eminent speaker and regularly presents his views and expertise on various market related issues through print and television media. He is also a fellow member of the Institute of Chartered Accountants of India. He is the Immediate Past President of Commodity Participants Association of India.

Our reconciliation for this undervaluation is that the market is already pricing in a takeover. Some evidence of this can be demonstrated by the 1.0 beta of paramount. If we look at the 1992 Q1 to August 30 1993 returns of S&P500 and PCI, PCI is +30.6% and S&P500 is +14.6%, which implies an approximate

In case the organisation announces the issue of stock, then it is expected to cause decline in stock prices as investors would believe that managers are more likely to issue the shares when they are overpriced (Penman,

Precedent  Transaction  Analysis       When  comparing  the  potential  MCC  acquisition  to  precedent  transactions  of   similar  firms  by  size  and  by  transaction  date,  we  found  a  valuation  of  approximately   $11.5  Billion  (Appendix  2).         The  precedent  transaction  analysis  can  tell  us  how  to  deal  with  a  negotiation   based  on  historical  transactions  already  completed.   However,  it  is  important  that   we   understand  the  limitations  of  this  method  as  every  situation  in  which  a  merger  or   acquisition  deal  is  made;  there  are  multiple  dependant  variables  at  play  with  different   strengths  of  correlation.

Through the cumulative abnormal returns (CARs) that a company receives from the merger, we were able to see the effects of second requests and complaints on the company’s stock price over time. This methodology of using event studies to gauge the effects of mergers and the antitrust agency involvement was first applied by Eckbo (1983), and most recently by Filson, Olfati, and Radoniqi (2015). The event studies used in both of these journals and the others mentioned within the review of literature give us a good understanding of how accurate event studies are for predicting the effects that second requests or complaints given out by antitrust agencies can have on merging firms and within their

A) What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement?

Assignment #1 - Leon’s versus The Brick etc.) have a vested interest in understanding inherent risks of engaging in economic activities with such companies. In addition to periodic and timely filing requirements for publically traded companies, market based share price data is readily available through most online news networks or major stock exchange websites. Yet another touch point for the financial analyst to access relevant and valuable business intelligence on a timely basis.

After a profit announcement was made by David Jones Ltd, it is the objective of this report to note whether there was an impact of such information on investor behaviour via the share prices of this company. To ensure that the information found was accurate, the effect of the All Ordinaries was taken into consideration and comparisons were made between David Jones and its two main competitors. After analysing the closing share prices before and after the date of the announcement, it was found that share prices reduced more than that of the general stock market and also more than that of its main competitors. This report concludes that the announcement of accounting information by

Merger motives that are questionable on economic grounds are diversification, purchase of assets below replacement cost, and control. Managers often state that diversification helps to stabilize a firm's earnings and reduces total risk, hence benefits shareholders. Stabilization of earnings is certainly beneficial to a firm's employees, suppliers, customers, and managers. However, if a stock investor is concerned about earnings variability, he or she can diversify more easily than the firm can. Why should Firm A and Firm B merge to stabilize earnings when stockholders can merely purchase both stocks and accomplish the same thing? Further, we know that well-diversified shareholders are more concerned with a stock's market risk than with its total risk, and higher earnings instability does not necessarily translate into higher market risk.

Baruch Lev and Feng Gu authors of “The End of Accounting and The Path Forward for Investors and Managers” indicate that over the past 110 years, the structure and content of financial reports has not changed, and that the role that these reports play in influencing the decisions of investors has greatly diminished. Lev and Gu make a case that non-transaction events that are not captured by the financial reports such as those disclosed through 8-k filings with the Securities and Exchange Commission (“SEC”) have a greater impact on stock prices, and thus more useful to investors. In addition, they suggest that one of reasons for the decline in usefulness of financial reports stems from the increase of estimates that has made its way into these reports (Lev and Gu 2016).

A) What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement?

1. Historical prices for both the firms and BSE 500 were collected during the event period from day -60 to day +60, and Day 0 being the announcement day.

This study aims to evaluate both the short term and long term shareholder wealth effects of the acquiring and target firms. Furthermore, the study will assess the relationship between the actual stock market reactions to mergers and acquisitions (M&As) announcements by examining the merger between First Busey Corporation and Main Street Trust Inc. First Busey Corporation is a financial holding company headquartered in Urbana, Illinois and Busey Bank is its subsidiary. Main Street Trust is a diversified financial services company and the holding company for Main Street Bank & Trust. On 20 September 2006, First Busey Corporation and Main Street Trust Inc. announced that they would come together as a merger of equals. Their agreement states that each Main Street common stock will receive a fixed exchange ratio of 1.55 shares of First Busey common stock. Although it was clear that this event is an acquisition with First Busey as the buyer and Main Street as the target firm, the difference between a “merger” and an “acquisition” has become more and more blur in various aspects. For the purpose of this study, the term merger and acquisition will be used interchangeably.

This report will look at the investments of the firm, including analysis into the balance sheet and profit and loss. While also looking at the sources and uses of funds. Included also will be a share price evaluation and how the results of the earlier analysis could explain the fluctuations of the share price.