Mercury Case

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MGMT E 2720 Mergers and Acquisitions Supplemental Case Questions 1. The New York Times a. Why is there so much family control in the newspaper business? b. How did the Sulzberger family manage to retain control on the NYT after it went public? c. How does the NYT dual class structure differ from the one used by Dow Jones, prior to its takeover by Rupert Murdoch? d. What explains the behavior of the NYT institutional shareholders – not just Morgan Stanley but also Private Capital Management, T Rowe Price and Vanguard? e. How should Arthur Sulzberger, Jr. respond to Morgan Stanley’s proposal? 2. Valuing AOL Merger a. The Merger was completed on January 11, 2001. Was it a good idea?…show more content…
Assume that (i) if the trial proceeds, it is excepted to last at least one month and to result in one of two possible outcomes in terms of the price per share established in court; the $273,000, being claimed by the plaintiffs, or the $55,400 being defended by Herbert Kohler; (ii) Kohler estimates the probabilities of these two outcomes at 30% and 70% respectively. 7. Adelphia a. What did the Rigas family management do wrong? Were any aspects of Adelphia’s corporate governance/ownership structure under the Rigases problematic in your view? Is there anything that concerns you about the Adelphia/Rigas family “co-borrowing” arrangements? b. If one ignores any alleged frauds by the Rigases, how viable was the Adelphia’s business prior to the bankruptcy filing? c. Under pressure from Adelphia’s unsecured creditors, new management decided to put the company up for sale rather than pursue a traditional standalone Chapter 11 reorganization plan? Are there reasons why management should reconsider this decision, an in general, what considerations do you think are relevant in choosing between the two approaches to resolving financial distress (i.e. sale vs. reorganization)? d. Based on financial and non-financial considerations, which of the competing offers to purchase Adelphia’s assets (as

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