Incon Merger

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.

These two offers came from 1) a fund consortium led by Robertson Stephens Omega Fund (“RSC”) and Technology Crossover Ventures (“TCV”) and 2) CellTech Communications (“CellTech”), a vendor of wireless technology which had recently gone IPO.

The general strike of May 1926 was not a success for those attempting to force the government to act to prevent wage reductions and worsening conditions for coal miners. Had the TUC been more prepared to strike and followed through with what the miners wanted them to do, the government would have been faced with a much tougher challenge. Despite this, even if the conservative government were faced with a tougher challenge, the preparations and subsequence actions taken by them were more than enough and the main reason for the failure of the strike.

3. At what price would you recommend that Rosetta Stone shares be sold?Rosetta Stone: Pricing the 2009 IPO

adamantly opposed any recognition of the union. Thus, the union members decided to strike over wages, safety

Pepsi’s US$360M investment was too expensive. Based on our calculation, this investment was worth almost 60% of Deltex equity. However, in the proposal, Pepsi would only receive 30% of Deltex equity.

However, United Chemical's offer of $160 million is well under the value of the IPD. According to our valuation, Nova could sell IPD for a price between $256 million and $501 million.

This question expands upon the opening question and helps deepen the mystery about the acquisition—the bid price seems to be a fairly full-price offer for PacifiCorp.

Exhibit 4 tells us that the stock price of Interco started going up in July from about $44 to $72 on the day of the Board meeting. This tells us that markets anticipated that Inteco is a target for acquisition and increased the stock price of Interco in anticipation of an acquisition premium.

In 2012, Dick Smith was purchased by Anchorage Capital Partners, and Nick Abboud was appointed as a chief executive officer (CEO) since then (Low, 2016a). In December 2013, it was floated into the Australia Stock Exchange for $520 million with roughly $370 million of profit (Mitchell, 2015). After Initial Public Offering, the value of

Looking at Exhibit 11, which is a summary of comparable transactions by business segment, the offer for Interco once again fails to persuade. Looking at the average purchase price multiples of comparable transactions (refer to appendix B), it is apparent that the Rales proposal multiples are invariably lower than the industry averages. It would be in Interco's interests to divest and realize the higher earnings themselves, rather than allowing City Capital to take over at such a low offer.

The previous 959.6m Amoco shares will convert into 633.336m shares of BP ADS equivalent, with the previous 965.6m ADS shares, BP shareholders will take part 60% of the new company, still have majority control over the firm. In this deal, we paid for about 20% premium, which is quite standard and normal. Because synergies from revenue and chemical divisions’ combination are not estimated nor not expected to bring benefit, the main synergy from the merge is 2 billion dollars saving of pretax operating cost. The value we create for our shareholders is $14,840.06 million (Amoco stand-alone value $46,430 million+ synergy $2 billion – price paid for Amoco $33,538.94). But this number is quite sensitive to a lot of factors, such as future energy demand, oil and gas price, industry growth potentials, ultimately affecting Amoco’s stand-alone and synergy valuation. Please

A prospective buyer has to consider the motives and financial positions of other bidders. Kohlberg wants to buyout the company in order to turn it into a private firm. ARCO has a pretty strict limit in what it can offer because of its highly leveraged position. Even if a company has the ability to take out a larger loan to make a greater offer, it has to consider the consequences of doing so. While a company like Socal has unrestricted credit, its decisions as to how to operate the company after the buyout are very limited. Creating a lot of debt in order to finance the purchase is a large risk. If the company does not perform well in the future it could face tremendous loss. In this case, a bid of $80 per share would be appropriate for an un-leveraged company like Socal. This would be enough to win Gulf while still leaving breathing room for shareholders. Taxes do not need to be considered, because the benefits cancel out the

The Venrock/BVP offer an inside round at 98.5¢ per share. The pre-money was roughly $25 million. They would share the $10 million, with Venrock taking more to increase its ownership, and leave the round open for another $5 million, getting the deal done at $15 million with an option to close as high as $18 million.

Contrastingly Vale is the second biggest mining company on the planet, likewise Vale represents to be the world’s largest producer iron mineral and -pellets. Logistic frameworks such as railroads, airports and harbours in Brazil are another big operating factor. Also several joint-ventures gives the company the opportunity to invest in steel and energy sections. Vale also operates in different countries than Rio Tinto and BHP do that gives them another competitive advantage. (Vale Annual Report 2013).