The Announcement From A 1 Holdings Company

1374 Words6 Pages
The announcement from A-1 Holdings Company for a hostile takeover made National Brands’ management worried. The CEO of the National Brand, Bill Hall, the chief operating officer, Tom Straw, the chief financial officer, Doris Faraday, and Stan Lindner from public relation all sat down and discussed on this particular problem. So far, A-1 Holdings had already bought 5 percent of National Brand’s outstanding shares and made offer for the rest at 7 1/8 over market, which was $55 per share. For Bill Hall, the head of A-1 Holdings, Kelly O’Brien was a bad guy who might just want to take over the company and make his employees miserable. Tom Straw then suggested the poison pill approach to defense the takeover but the idea was doubted by Stan because it did not seem good for the company. Doris, after working with her numbers, proposed her Pac Man defense idea. The Pac Man defense approach meant making counter offer to buy A-1 Holdings at $17 a share. She believed with National Brands’ strong financial position, it is highly possible that this defense would work. Bill agreed with this idea and started to have his people working on analyzing the details of this approach. The analysis started with A-1 Holdings’ ability to buy all the rest 95 percent of National Brands. This 95 percent equaled 107,958,000 shares outstanding, and at the offer of $55 per share, A-1 Holdings would need the equivalent of $5,937,690,000 in cash to be able to take over National Brands. Assume A-1 planned
Open Document