Yanzhou Bids Cas

Just a few years ago, the term "Google Australia" would likely have drawn blank stares from most people, but more recently the term has come to define one of the best places to work around in general and in Australia in particular. In fact, Google Australia has already established a prominent presence in Australia and New Zealand, and the company's performance to date suggests that it is well poised to take advantage of the growing numbers of Aussies and Kiwis who are turning to the Internet for many of their consumer and professional needs. The company's growth has been attributed in part to the fact that it seeks out the best talent available and goes to great lengths to retain them, including some seemingly lavish accoutrements and perquisites that might make Nero blush with envy but which may appear less than cost effective to the casual observer. To determine the effectiveness of Google Australia's human resource initiatives in this area, this paper provides a review of the relevant peer-reviewed literature, followed by a summary of the research and important findings in the conclusion.

Mergers and takeovers are forms of external growth within a business. External growth occurs when one firm decides to expand by joining together with another. A takeover specifically refers to the gaining control of a firm by acquiring a controlling interest in its shares (51%). Merger, on the other hand, means the joining with another firm to form a new combined enterprise, shares in each firm are exchanged for shares in the other.

Several internal factors can influence the valuation of a company, however, in the subsequent are some factors that will assist management in protecting its shareholders. The first reason is the desire to generate profits for the company, as a profitable firm will attract investors. Secondly, the need to improve the management of a company can lead to valuation as the information can be used to spur growth. Valuation will assist in understanding some of the factors affecting the value of the company such as client relationships, financials, image, technology employees, and marketing. Proper management is implemented after identifying the issues affecting the organization’s value. Thirdly, communicating to the public accurate and current information is essential in attracting investors and maintaining transparency, which builds the company image.

Hostile takeovers are no longer common as they were in the 1980s. However, legal and ethical issues still surround mergers and takeovers (Thomas, 2009). This document examines and identifies legal and ethical issues which the merging parties should consider before, during and after a merger. The document will also look at measures of managing these legal and ethical issues.

When analyzing investment decisions, we did not consider in any detail the largest investment decisions that most firms make, i.e., their acquisitions of other firms. Boeing’s largest investment of the last decade was not a new commercial aircraft but its acquisition of McDonnell Douglas in 1996. At the time of the acquisition, Boeing's managers were optimistic about the merger, claiming that it would create substantial value for the stockholders of both firms. What are the principles that govern acquisitions? Should they be judged differently from other investments?

In the domestic market, it is substantial for Yancoal to contribute to the Australian economy. In the end of 2013, Yancoal owns about 2000 employees at directly operations. The company has invested billions of dollars and it aims to continue to generate more employments and royalties to the future.

Theoretically it is assumed that mergers improve the performance of the acquiring firm due to

reasonableness of the asking price and the likely effects of the acquisition on Brown-Forman’s share

1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp?

Australia is unlikely to fight against newly appearing and developing countries in the production of a low-cost and large manufacturing, especially with our neighbours. In fact, as we are constantly reminded, Australia is a high wage, high skilled country and could be more successful if changes regulations are needed to meet the demand that this brings. The reality is that the increasing cost of doing business in Australia is beginning to affect this area, with loyalty promises to major projects being tested. (Chris Pash, June 5 2014, 11:28am)

Companies purchase ownership in other firms as a course of business. These events create concerns among investors and employees. Employees wonder what impact the purchase will have on their jobs. Investors wonder what impact the purchase will have on the value of their securities. After the purchase, the company must determine how revenue needs to be reported for the investing company. Many companies find that they must use the equity method to report revenue earned by the main company.

Takeover tactics have been used throughout history. Three important tactics are Bidding strategies, Casual pass, and Bear hugs. Bidding strategy is 2/3 successful to the 1st bidder. Bidders have to watch out for not only the target company, but also for other bidders. There has been a higher successrate on bidders who actually contact the target company first in hopes of a more amiable bid. A second bid can be even more successful, therefore the first bidder shouldn’t offer too much to prepare for a comeback bid. This is called Optimal Bidder. Casual pass is an informal overture before bidding . The problem with this is that it gives the target advance warning of the possible takeover. Bearhugs apply pressure to the target before bidding. The acquirer contact the Board of directors and state that they will go to the stockholders and present an offer to them without the Board’s consent. This forces the target to take a public position and puts pressure on the Board because it must consider the offers or they violate fiduciary duties.

The acquirer can see short term movement in the share prices to resemble the per share price that was being paid by the acquirer. In the given case study, Tech Mpire Media is being acquired by the Fortunis resource limited followed by a six million oversubscribed raising of capital. Fortunis resources limited fully acquired the Livelynk, an operator of the company (Cinnamon, Helweg-Larsen and Cinnamon, 2010). In the contract agreement, Mpire Media pays its affiliates and bills clients only when the measurable results such as product download or sale are achieved. With the help of acquisition, the company Fortunis resource limited raised its funds with an amount of $6 million. The main aim of the companies is to grow in the market and build its reputation in the market. The shareholders should be provided with maximum returns and customers are provided with the quality services (Elliott and Elliott,

find little evidence of wealth creation, with shareholders of the target firms gaining at the expense of the bidder firms. A merger is said to create value, if the combined value of the bidder or target firm increases on the announcement of the merger (Houston et al., 2001) (Ghosh & Dutta, 2015) (Campa, 2004). Moreover, the synergistic gains hypothesis of corporate acquisitions underlined by Isa & Yap (2004) states that, a combination of two firms will result in a combined gain that is, more than the sum of the value of the individual firm. These gains may be attributed to the increasing efficiencies and synergies of the companies involved.

However, in some cases, consensus may not be reached. Then there are different tactics implemented by acquirer firm. Acquirer can make a tender offer. It means that acquirer goes directly to the shareholders of targeted company and buys their shares in return for some premium over the current market price. Before tender offer, there is asymmetric information between parties. Shareholders require a premium because they are informed. Perception to the targeted company in the market changes as fast as possible. We conclude that it is likely to see an overbidding in a hostile merger rather than a friendly merger. The reason is that the acquiring firm may inevitably pay higher premiums in order to gain at least 51% of target firm’s shares and shareholders can be convinced to sell their shares if the target’s management notified them about not to sell.