Conrail Case Study

This law forced the railroads to report to the federal government before making important decisions like how much to charge customers. The railroad companies were outraged and used the defense that their monopolies were almost automatically formed, but there was nothing they could do since the law was federal. (Moritz 19-24, 28)

Pre-merger filing requirements have a potentially significant impact on the cost and timing of closing a transaction, and even the very likelihood of closing. Parties anticipating the prospect of intensive antitrust review may choose to allocate antitrust risk in their merger agreement, selecting appropriate obligations of mutual cooperation, apportionment of expenses, termination rights, or break-up fees. No one size fits all in allocating antitrust risk in merger agreements. Where appropriate, the parties to a transaction should identify and retain local and/or regulatory counsel to assist them with evaluating the state and regulatory law issues raised by a potential acquisition and developing a plan to address such

As I was thinking about the two companies that I wanted to do for my course project on, I began to research companies on the internet and I ran across the merger between United and Continental airlines. The reason that I choose to do the merger is because I knew that they were going to go through many changes within this merger. Both airline companies have a lot to offer to each other with this merger that they can compete with Delta airlines one of the largest airline in the world. This merger will bring about several changes within both companies. In this paper I will be providing the different changes between both companies with the merger including the culture, systems and unions. Since they were two different companies

In March 2012, ConocoPhillips Company and ConocoPhillips Canada Marketing & Trading ULC expressed intent to assign the Keystone Expansion, Patoka and Marketlink Transportation Service Agreements to Phillips 66 Canada ULC. The year before, the Conoco Phillips board of directors announced that it would pursue the separation of its refining and marketing and exploration and production business into two separate standalone companies. Phillips 66 was to be the refining and marketing company and COP was to become the exploration and production company. The TransCanada credit risk department assessed that COP and CPCMT had an “A” credit rating and assets totaling $110,000,000,000 while Phillips 66 had a “BBB-” credit rating and estimated assets of

6. If the company decides to go ahead with the targeted stock issue, what specific provisions or features should the stock include to ensure maximum value creation? How closely would you model USX’s targeted stock on GM’s alphabet stock?

Although it is well known that Time Warner Cable and charger offer internet and phone services this merger Drew my attention because of it's television programming. It should be noted that before this merger I never paid attention to mergers between companies before although I was aware of them because I every year that I have did enrolled at some school I've taken some form of business class that has kept me away or of everything in the business world. But one of the biggest reasons I tuned into this besides the fact that I'm an avid TV watcher is because it was speculated that Comcast was trying to buy Charter Communications at one time and at another time it was trying to buy Time Warner Cable but that deal fell through and that deal only fell through only a couple months prior to the announcement of this new merger. Then all of a sudden out of the blue you hear that Charter Communications has merged with Time Warner Cable and Bright House. Dishing out a whopping 60 billion dollars for Time Warner Cable and assuming 21 billion dollars of their debt and then another 11.4 billion dollars for

The strategy was to have Credit Mobilier, which was totally controlled by the same individuals, charge the Union Pacific for the expenses of developing the railroad. There was no "business sector worth" of the work, as there were no different bidders, so UP paid a great deal more than Credit Mobilier spent. As a traded on an open market organization, Credit Mobilier could indicate

Some high-profile takeover targets share price for the steep discount, they signed the agreement price, showing cracks that may be lurking in the current trading boom. Such as Take Office Depot Inc. The company’s stock trades 29% below the price Staples Inc. agreed in February to pay for its smaller rival. I believe the growing number of investors worried about antitrust regulators will block an agreement, combined with the country's two largest office supplies chain. Cigna Corp.’s stock is 22% below the value of Anthem Inc.’s $48 billion offer, while oil-field-services provider Baker Hughes Inc. trades 17% cheaper than the price of its pending $35 billion sale to Halliburton Co.

Instead, the services offered by both parties tend to overlap. The competition commission also carried out an investigation on the effects the merger had on competition. According to the commission, in areas where both parties had cinemas, the elimination of one competitor would give room to increase prices or reduction in the quality of service. Expansion plans by any individual party would also be affected s a result of the current common ownership of both the business and the competitor. Also, the merger gave the newly formed company the power to offer programming services, which it could use to distort the completion.

Many people across the United States depend on safe and secure rail systems to travel from one point to the other, as such security of those travelers must be of utmost priority to governments at all levels, as well as stakeholders in the rail industry. There are various laws in the United

The concern of the regulator will be to determine if the merger could raise or reduce the welfare of consumers. That is if the reduction in cost measured by the lower average cost would be sufficiently large relative to the rise in price, then the merger would improve welfare of consumers as cost saved will be greater than deadweight loss. But if the rise in price after the merger is sufficiently large relative to the reduction in average cost then the merger lowers welfare (deadweight loss).The antitrust authorities can determine if the merger would enhance welfare or not depending on how reacts to the merger. The goal of competitors is to determine whether the merged firm will provide quality or worse services compared to the combined premerger services provided by the firms engage in the merger. If the quality of services provided by the merged firms falls then competitors will be better off, since demand for their service is likely to increase. The increase in demand for the services of competitors induces them to provide more to the market, but on the net the total quality of service provided in the industry would falls creating higher prices, in that case the merger will not be challenge by the competitors. The higher price resulting from the merger reduces welfare as consumer surplus falls. On the other hand if the new firm provides better quality services

Nicholson currently has a value of $44 and a Book Value of $51.25. For this reason we believe we can offer just above the book value, $52 a share to the current stockholders, 16% more than what it is currently being traded for, and still be attractive from Cooper’s perspective. This is $10 more than what was offered by H.K. Porter company earlier in the year. By offering this much it satisfies Nicholson while still keeping the company attractive to Cooper’s shareholders.

An approval from directors of each corporations is required in the transaction of a merger plan. Additionally, the approval should be filed with the state officials which will issue a certificate of merger to the surviving company. In a regulated industry, a company requires approval of acquisition from a regulator and the likelihood and speed of antitrust or regulatory approval might be affected by how merger trends in its industry (AKD, n.d.). Antitrust approvals prevents illegal practices that are price-fixing and mergers conspired by companies who want to achieve monopoly power. This would decrease the competitive vigor of the markets. Therefore, antitrust approval is necessary in an open market because a competitive market lower

There are several barriers that cause anti-competitive effects when merging two companies. Such as the brand name barrier and sunk cost barriers will make it tough for new companies to get immediate recognition to compete among established companies. It restricts the current firms from expanding and seems to exclude new firms from entering into the market. Also, the effect in networking appears to allow only a few businesses to dominate in telecommunications and Internet backbone markets. Due to this, the argument of WorldCom, Inc. and Sprint’s excess capacity in these markets makes them far from achieving the theory of contestable markets, which is having no barriers to entry and exit. Such ability is highly concentrated between few

On appeal to the Appellate Authority SEBI‘s charge was demolished on the ground that there was no unpublished price sensitive information involved since prior to the announcement of the merger, leading financial newspapers had reported the possibility of the merger and hence it was public knowledge. U.T.I could not allege that the information was undisclosed since it had the best of market analysts and experts who were fully familiar with the market trends. As a fall out of this case SEBI amended its Regulations in 2002 to specifically provide that speculative reports in the media would not be treated as publication of price sensitive information.