Case Study – Gsk’s Acquisition of Sirtris: Independence or Integration?

The tactics that will be employed during the negotiation will be integrative in nature and with a weak BATNA there is little incentive for Excalibur to act aggressively, only strategically. Logrolling involves trading off issues to reach a solution. With multiple issues at hand logrolling will be most effective when both parties are honest, however considering all my interests I will be open as to which issues are most important to me (eg. price)but will hide specific details (my BATNA). I will also attempt to create positive interdependence between Knight and Excalibur by expanding the pie and offering non specific compensation. Currently, the negotiation pie is limited to the pistons and Excalibur will need to offer more resources to make a business relationship desirable for Knight. To expand the pie I will be offering free marketing on Excalibur’s website, exclusive rights to pistons and long term contracts offering

I played Chris Rudolph in this case, and did well in this negotiation by not only focusing on the final price, but also on the extra agreement of letting Lama provided high quality work to our company. When we started the negotiation, I suggested us to divide the total price into two parts, the first one was Market Research fee, and the second one was the Lama-Lee’s charge. After some initial discussion, I realized the Market Research fee was hard to negotiate, so I planed to put most of my effort on Lama-Lee’s fee.

For calculations of the acquisition price, the P/E is taken to be 8.6. The acquisition price is calculated by multiplying this value with the historical average of net income. Thus, the acquisition price comes out to be $186,215,800, which is $189,186,673 less than the enterprise value.

Pacific was not willing to walk away from Relient which I felt they had unreasonable request. .

The process to start with was quite integrative with both sides laying out their priorities and what their limitation were. However, in between we reached an impasse with both sides not agreeing with each other. We set the anchor at 16,000 and then Anna came back with a bid of 65K plus 5% of gate. We said that was too high and said that was way off industry norms. We countered with 19 K. She said the base was too low, that was not possible and he wanted us to counter bid against ourselves, which we did not. She offered 55K + 5 % of gate. We said we could do 24k but no gate collection. She said 45 K + 5% of the gate. We offered him 26 K and at this point the negotiation kind of stalled. The Opera really wanted Sally for the role and Sally really needed a job as she was

1. How did you plan for the negotiation? Explain how you decided on a strategy?

2) If you were the responsible manager at the ASIC Division, would you accept Western's offer?

All the interests can be summarized under “maximizing profits”. Without knowing their actual costs for each of the options, I can’t be a 100% sure of the priority of the issues, but I will need to gauge that based on the negotiations. With the given information, it looks like their issues are:

2. Assemble a negotiating team: Breezy will have a team that represents all areas of the company affected by this relationship. In addition, the team will be composed of a chief negotiator, an experienced interpreter, and senior management personnel and personnel with knowledge of technical, operational, and legal details. The roles of the team will be to choose a negotiating technique and conduct due dilligence on the parties involved, understand the business and social customs of the country.

Another change could be mergers and take-overs which can sometimes leave employees feeling uncertain about their future with the company, loss of trust and experience staff leaving.

Prior to the acquisition, Monsanto was worth only 15 billion dollars. There are many explanations for why Bayer paid so much over market value such as, the value Monsanto can provide Bayer. The acquisition of Bayer and Monsanto could be considered a related diversification. Related diversification is a corporate strategy that is based on establishing and/or acquiring a new business unit that is related to a company’s current business units (Hill, Schilling, & Jones).

3. Merger arbitrage (or risk arbitrage) funds speculate on the completion of stock and cash mergers, typically buying the target and hedging the risk of the acquirer’s shares accordingly to exchange ratio in stock mergers. What positions would risk arbitragers take in this deal? How would their positions change if the board appears to favour Quest offer?

2. If you are Westphal, what issues does the call from Slaoui raise for you? What terms are you most inclined to negotiate?

QI-TECH, a Chinese manufacturer of precision Coordinate Measurement Machines, is a joint venture established by Indiver BV, a Dutch aircraft engine manufacturer and a Chinese state-owned enterprise QQMF. Looking for a strategic exit, Indiver BV, which holds 50% of QI-TECH, must negotiate a sale with its Chinese partner and a potential buyer, Brown & Sharpe. For this purpose Roger Kollbrunner, the Business Development Manager at Indivers BV, has to develop a viable deal structure and negotiation strategy.

Introduction AstraZeneca PLC (AstraZeneca, AZN:NYSE, AZN:LSE) is one of the largest pharmaceutical companies in the world. It was formed in 1999 from the merger of Sweden’s Astra AB and UK’s Zeneca Group plc. Core Activities AstraZeneca is engaged in the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. One of the key benefits of the merger between Astra and Zeneca is seen as their portfolio of new products in development: AstraZeneca call this their 'product pipeline'.