Cooper Industries
Case Study
Jonathan De Leon
Ann Lewis
Mary J. Roy
Crystal Vincent
University of Phoenix Online
Advanced Problems in Finance
FIN 545
William Crockett
September 5, 2005
Cooper Industries Inc. Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor's offer and Cooper financial data was decided. The remainder of
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Additionally, Wall Street investors would view the maintenance of Nicholson management as a stabilizing factor in the merger. Loss of product lines Whichever company acquired Nicholson, there was no doubt that aggressive cost cutting measures would be pursued; this would undoubtedly mean marginal product lines would cease to exist. Although Cooper could not emphatically guarantee that nothing would change, they could guarantee that they would work with Nicholson to determine if improvements could be made to product lines at risk and thereby maintain their existence, or at the least--include Nicholson management in the decision making alternatives.
H.K. Porter Stock valuation - If the merger with VPN were successful, Porter would receive VLN preferred stock for their 177,000 Nicholson shares. VLN stock performance had been dreary, and did not show any signs of growth in the short-term. This would make it difficult for them to sell the shares of VLN on the American Stock Exchange which does not trade in large blocks. Additionally, from the years 1968 to 1971, VLN net sales had grown only 3% from $97 million to $100 million. Net income actually decreased by almost 7% for the same time period from $3.2 million to $2.98 million. Quick Sale Porter will most likely sell their shares
Target Corporation’s (NYSE:TGT) share price declined nearly 7.5% in the last month alone, amid the potential threat of higher taxes from Donald Trump’s new administration. Aside from higher taxes, the company looks in a very solid position to expand its profitability and dividends.
Morris Mining Corporation owns and operates mining facilities that are located in the United States, and Canada. This company primarily distributes extracted ores and minerals to their customers. Recently, in January 2015, Morris Mining acquired the mining company King Co. Once the company has been acquired, Mining Morris plans to record the difference of the purchase price and identifiable net assets as goodwill. The identifiable assets and liabilities of King Co. are going to be recorded at fair value on Morris Mining 's books. There has been discussion as to how the company is going to report the fair value for the patent that is part of the assets they acquired from King Co. Rob, an audit manager on the Morris Mining engagement, and Gabriela, the audit senior, are trying to evaluate if the method of the fair value estimate it reasonable.
1) if you were on the Dynacorp task force, what would be your first choice for an alternative design? what would be your second choice? 2) Which of the problems of the current design would your chosen design address? what problems (if any) would it not address? Are there any new problems to which it might lead? 3) What linking and alignment mechanisms would you propose to make the “grouping” of your first choice design more effective?
Martinrea International Inc. (TSX:MRE) is a Canadian manufacturing company servicing customers around the world, primarily in the automotive sector. Founded in 2001, Martinrea has grown rapidly through both acquisition and organic growth, and currently employs over 14,000 people in 44 plants across North America, South America, Europe, and Asia. The Vaughan, Ontario-based company has four sectors in its corporate structure, which include aluminum, fluids, metallics and modules. Martinrea’s four core sectors service mainly the automotive industry. However, the company has also begun to seek a broader cross-section of clientele, investing in lower volume assembly line parts such as buses, recreational vehicles, air conditioning, military, and farm appliances.
The management of Cooper Industries, Inc., is considering whether to acquire the Nicholson File Company, a leading manufacturer of hand tools. The Nicholson family and other members of the management group own about 20% of the Nicholson stock; the remainder is publicly held. From the standpoint of Cooper, an affirmative decision may involve Cooper in a bidding contest with two other companies, which have already purchased part of the outstanding Nicholson stock and made tender offers in an effort to acquire control of Nicholson. If Cooper decides to proceed, it must determine what price it will have to pay in order to acquire control of Nicholson and whether it can reasonably afford to pay this price for Nicholson. These decisions must
In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the eyes of the Professional Tradesmen. In the Professional Segment most of the people who buy the products are people who need these tools to make a living such as carpenters, electricians, plumbers, roofers, and general remodelers. Black and
On the assumption that the Cooper management wants to acquire at least 80% of the outstanding Nicholson stock and make the same
I experienced the same issue when I forgot to select the Net Income in the drop down menu option on question number 7. I also used Figure 5.8A-F as my reference, but I still forgot to include some transactions. I guess double checking is the better way to make sure that all transaction was entered.
The case study focuses on an employee, Paul Keller, who is being affected by a number of factors. His job performance is hindered by constraints such as his work environment, his home environment, stressors, mood, and the management style of his superior. The case study demonstrates how his job performance is affected and what the consequences could be as a result of his poor job performance and lack of concentration.
1. Was Borg-Warner’s Industrial Products Group a good candidate for a leveraged buyout in 1987? Evaluate the price paid and the structure of the deal that closed in May 1987. Are you optimistic about BW/IP’s prospects?
Why are some Vet added on the case load or why not (after checking 203)?
When assessing if Jack Gin should acquire Derwent Systems or focus on IPO it is would be best suggested to undertake a review of the attractiveness and competitive position of the proposed acquisition. One method of doing this is through the use of the Boston
In order to acquire at least 80% of the outstanding Nicholson stock, Cooper will have to acquire all other stocks including those owned by Porter Inc., except those belonging to the Nicholson family and management, since we are supposing that Nicholson
Asquith(1983) argue that the previous studies, Dodd(1980) and Langetieg (1978), did not examine the possible changes in value and the market’s complete reaction during the merger process, and did not resolved the question whether the target firm’s stockholders gain averagely from merger. He point out that Langetieg (1978) just focus on the merger date as the event date, thus ignore the stock markets’ response in the
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