1. Why is Auhll (CEO of Circon) resisting to the takeover? How do incentives of Auhll conflict with those of other (minority) shareholders?
Auhll liked challenges, he had an innovative mind and he liked to do something new and different every time. .Auhll seems to have a soft corner for lost causes, Circon was a lost cause which he had picked up to turn its performance completely.
ACMI as well as Cabot fall into the same category as that of Circon Inc. Having seen success with Circon and ACMI, he had an undoubting confidence that he would turn around the performance of Cabot as he did with Circon and ACMI. His approach and belief, that he cannot be wrong had led him on a different path as that of the shareholders. The takeover bid was
…show more content…
How does Circon’s poison pill work? Please show in your calculations how the poison pill makes it more difficult (expensive) for acquirer to buy Circon
A poison pill works by distributing to all shareholders warrants to buy more common stock from the company at substantially less than the market price. These warrants become exercisable only in the event that a shareholder (“the acquiring person”) buys more than a certain percentage of the company. These warrants are explicitly not exercisable by the acquiring person, so the resulting dilution in his voting power and economic stake may make the acquisition of the target through market purchases too expensive to pursue.
In Circon’s case, the poison pill will be triggered at 15% and allowed all shareholders (other than the acquiring shareholder) to pay in $70 cash and receive in return $140 worth of Circon common stock for each share owned (valued before the takeover attempt)
Value for each Circon share before the takeover announcement - $10.56/share
On the day of announcement share price went up to - $12.125/share
No of shares outstanding for Circon – 12.77 M
15% of
In looking at the suit filed by Anheuser, we can closer examine how Anheuser- Busch was damaged through the actions taken by Mr. Thayer. Anytime that an insider trading scandal takes place, there is always damages and repercussions. The most identifiable damage is that of money and capital. Anheuser-Busch paid nearly $40 million more for the acquisition of Campbell Taggart due to the active trading of Mr. Thayer, and the rest of the insiders. It is easily identifiable, that one damage to Anheuser-Busch was a $40 million dollar excess payment to acquire Campbell Taggart. By exploring and understanding capital markets, we find other monetary damages to Anheuser-Busch. These damages come from the cost of ongoing lawsuits with the SEC as well as with the defendants, Paul Thayer, and the other insiders. Another monetary damage from the effects of the insider trading is the allocation of management resources during the legal battles and
The following information is provided for adjustments prior to closing the books. Lopez and Knepp ask you to enter the adjustments into the spreadsheet, in the two columns to the right of the unadjusted trial balance. (CM2 uses a perpetual inventory system.)
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
4- The committee and Ms Beckel decided to include a religious studies curriculum in the program. The principal approved of it. However, Ms Wright one of the community members did not. She threatened to show up at the committee meeting with the media. On the day of the meeting, Ms Wright showed up with a placard protesting the use of the bible in public schools.
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
The court deciphering between criminal negligence and recklessness. Criminal negligence being a person failing to perceive a substantial and unjustifiable risk that the result will occur or that the circumstance exists. The risk must be of such nature and degree that the failure to perceive it constitutes a gross deviation from the standard of care that a reasonable person would observe in the situation.
As mentioned in the introduction of the mini case, Hobby Horse Company, Inc. (HH) experienced a tough year in 2011. HH opened up a number of new stores but experienced a poor Christmas season. Christmas season is the biggest sale period for retail stores. As a result, bad Christmas sales performance played a big part of HH’s loss for year 2011. As we computed the financial ratios for HH, we can see the effects from new stores openings and poor sales performance.
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
Read Rush Johnson Farms Inc. v. Missouri Farms Association, 555 S.W.2d 61 and post a draft case study to the discussion board. Identify the Facts, Issue, Holding, Reasoning and Disposition. Case study #1 will be due week 3. This exercise will help you work through the reading a case prior to receiving a grade. Use the LEXIS NEXIS database through the Webster library to access the case.
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
Ques 1: Draw a detailed process flow map of the current process at receiving Plant#1. What is the capacity of each operation in the process?
Suppose you are the network manager for Central University, a medium-size university with 13,000 students. The university has 10 separate colleges (e.g., business, arts, journalism), 3 of which are relatively large (300 faculty and staff members, 2,000 students, and 3 buildings) and 7 of which are relatively small (200 faculty and staff, 1,000 students, and 1 building). In addition, there are another 2,000 staff members who work in various administration departments (e.g., library, maintenance, and finance) spread over another 10 buildings. There are 4 residence halls that house a total of 2,000 students. Suppose the university has the 128.100.xxx.xxx address