1. The Stock market reaction to the acquisition of the PacifiCorp seems to portray the deal as win-win situation since it created value for both companies. The Berkshire Hathaway’s share price closed the day at 2.4%, with a $2.55 billion gain in market value, while the Scottish power Plc only managed a $0.81 billion. For the previous owners, Scottish power included, the price offered shows the gain in value over a few years since the merger with PacifiCorp is significant. As per acquisition accounting, the $2.5billion increase in market value is the company’s increase market value. The share price increase in share price also indicates that it was a good long-term deal. 2. His investment philosophy changed over time and can generally be
WOOSTER — Wooster City had authority to remove nearly 50 cats from a Lucca Street property and the animals' owner, currently hospitalized by court-order in another matter, has until Aug. 11 to pay more than $14,000 for upkeep of the cats, which, otherwise, will be turned over to the Wayne County Humane Society.
The OWBPA discussed earlier established the requirements for waivers offered under ADEA. In 1994, Kolores Oubre worked as a scheduler for Entergy Operation, Inc. She was given a poor work review and was given an ultimatum by her supervisor. She was told she needed to improve her performance or opt to resign her position voluntarily and receive severance pay. She was given all the information in writing and given fourteen days to consider the offer and make a decision. After consulting with a lawyer, Kolores entered into the termination agreement and signed a waiver in exchange for severance pay installments. After receiving the last installment payment, she filed a claim alleging constructive discharge based on her age. Entergy Operations,
I have learned a lot after identifying my top 7 core values now I will compare them on a personal level, local level, and a global level. The first core value I identified was economic security, and I can compare this on all three levels. On a personal level, I contribute on a daily basis by working at The Home Depot. By working at The Home Depot, I contribute to my economic security by making a salary which helps pay for school. On a local level part of the money I make goes to taxes which help local citizens afford food and healthcare. Globally I contribute by helping people install greener and more environmentally friendly options. The second core value that I discovered that was important to me is health. On a personal level, I contribute
Under the two circumstances presented, I recommend that Harriet Burns and Richard Irvine should finance the purchase of Harmonic Hearing Co. through the deal proposed by the private equity firm, Comet Capital. This proposal best aligns with Burns and Irvine’s goal to select an option that offers the “best combination of cost, expected return of their ownership interest and financial flexibility.” To evaluate the two alternatives, a comparison based on IRR was assessed. Harrison Price’s proposal, which relies almost entirely on debt financing, offers an IRR of 215.5% (Appendix A). On the other hand, Joe Fowler’s proposal, which consists of equity financing, offers an IRR of
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?
3. Should Midland use a single corporate hurdle rate for evaluating investment opportunities in all of its divisions? Why of why not?
1. What are the factors that likely explain the difference between Microsoft’s market value of equity and its reported book value of equity?
Synopsis: Dow is acquiring Rohm and Haas from Ingersoll-Rand at an agreed price per share of $78. However, a deal with Kuwait’s Petrochemical Industries Company, which was supposed to generate $7 billion of cash to be used to finance the acquisition, had recently fell-through. The hiccup has led to Rohm taking legal action to force Dow to complete the acquisition as required by the merger agreement. The standalone value of Rohm’s share price is currently at $46.77 while the synergies could almost double that to $94.63 per share. By going ahead with the deal Dow would need to raise capital and that might lead to a lower bond rating.
This analysis will identify the current value of the company at a stand-alone value and explain why Nestle Food would want to buy this company and the synergies involved for their reasoning. We will also discuss who will benefit if Reynolds Metals were to sell to Nestle or were to create an IPO.
Based on the above considerations, the Ke ratio of the merger company will be 11.54%. Furthermore, for the revenue growth and ROE of the merger company, there are more risks than benefits. HP’s revenue may have a recession curve in the short term. Although the merger will bring cost savings of $2.5 billion, HP cannot realize these expected benefits immediately. Other than this, there were questions on the organization culture as well. If HP could not manage its organization properly, integration would only add on to the difficulties. The biggest factor of all is that to integrate the culture existing in the two companies would be a very difficult job. Based on all the considerations, we assume that the revenue growth rate after the merger would be 3.5% and the ROE would be 11%. And as a result, the combined stock price would be 9.0. (See Exhibit 3).
If the merger had taken place as per the current EPS values only, i.e. at the Exchange ratios as given below:
Summit Partners proposes to FleetCor Technologies (later preferred as “FleetCor” or the “Company”) an investment into FleetCor for the total amount of $44.9 million in return for a post transaction ownership of 54.2% in the “Company” and coming down to 46% ownership in the company after newly created stock options for management equivalent to 15% ownership in the company has been completely executed and fully diluted. This investment is in the form of convertible preferred stock with an 8% accrued interest, compounding annually. As the transaction come through, Summit’s prefer stock will be treated equal-footing in
Second, if we look at the individual businesses of Suez Lyonnaise after the merger, all of them except for “Other” (non-core) have demonstrated a consistent increase in revenues, EBITDA, and net earnings, which again provides greater value to its shareholders. The “Other” businesses
a) As Basques & Steiner (“B&S”), we will begin by first commenting on the characteristics of the merger and then discuss the relevance of preferred stock to Pressler – Awari (PA) and their completion of the merger.
The burst in M&A tendency in pharmaceutical sector is an inception to make the industry look like a pyramid. The present study is based on recent merger of Sun Pharmaceutical Industries and Ranbaxy; Sun Pharmaceutical Industries is a multinational pharmaceutical company having strong presence in the generic drug market in India. The company has a tremendous track record of 20 successful acquisitions. Sun Pharma after acquisition of Ranbaxy became India’s 1st and world’s 5th largest generic drug making company. Our study deals with impact of acquisition on financial health and profitability of the company. To come to a conclusion pre-acquisition and post-acquisition financial data have been