M&a - Lion Nathan Case Study

I agree with court’s decision to dismiss Ms. Marder’s grievance against Paramount. Ms. Marder made a contract with Paramount and sold away the rights to her story. The contract between Ms.Marder and Paramount was legal and binding; the courts could not favor her. Paramount became the legal own of Ms. Marder’s story at the time of its purchase; the price they paid for her story, although quite small, was the amount she had agreed to.

I would have become skeptical of Grant’s ability to continue as a viable going concern around 1973. Grant had accumulated substantial long and short term debt and simultaneously raised inventory levels, I would have been lead to believe that the company feared its ability to increase short and eventually long term sales. More specifically, in 1973 Grand also acquired

The Court ruled in favor of the appellant, and the decision is described as follows:

Purchased plant for good price…with new equipment and deleted marginal product lines as they expanded nationally

Two main risks need to be considered with this acquisition. The first risk is the contingent liabilities arising from Elson’s compensation and accumulated earnings from PTI’s interest-earning assets. Lane should provide the bank information on the accountant’s opinion on these contingent liabilities as rationale the bank’s valuation needs to discount them from their asking price.

Address the following questions in a 4-5 page write-up of the Boston Beer Company Case to explore the issue of Initial Public Offerings.

Address the following questions in a 4-5 page write-up of the Boston Beer Company Case to explore the issue of Initial Public Offerings.

A) What is the possible meaning of the changes in stock price for GEICO and Berkshire Hathaway on the day of the acquisition announcement?

Specifically, one of the first decisions that Ms. Growne should make, is whether she wants to acquire the assets of the tavern or the stock/interests in the business

1. Assess Interco’s financial performance. Why is the company a target of a hostile takeover attempt?

Ted received a call from his boss, Townsend “Sandy” Beech, the head of his four-person deal team and founding member of the firm. Sandy requested Tad, on a Friday afternoon, to review three presentations for possible buyout targets. Tad was to make a presentation at the partners’ meeting on Monday morning, recommending only one (1) investment and detailing the strengths and weaknesses of all three.

4. Consider the Worldcom-MCI merger and the Qwest-US West merger. Trying to avoid hindsight bias, should the board of MCI and US West have accepted these offers? What is the obligation to shareholders? Was that obligation fulfilled? What about WorldCom and Qwest? Did their shareholders benefit?

A newly-appointed director of a small German beer brewer must prepare to vote on three issues coming before the board of directors the next day: (1) approval of the financial plan for 2001, (2) declaration of the quarterly dividend, and (3) adoption of an incentive compensation plan for the marketing manager. The student’s task is to evaluate the past and prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to:

1. Analyze the economic rationale of the Carborundum acquisition. Under what conditions an acquisition would be expected to add to shareholder value in general? Do any of these reasons apply to Carborundum acquisition?

* The Board of Directors should approve the proposed option trading policy and should choose various combinations of the above strategies as their option investment strategy.