a)
To discuss: The white knight takeover defence over the hostile merger
Introduction:
Hostile merger refers to the acquisition of one small company by another large company without mutual concern.
b)
To discuss: The poison pills takeover defence over the hostile merger
Introduction:
Hostile merger refers to the acquisition of one small company by another large company without mutual concern.
c)
To discuss: The greenmail takeover defence over the hostile merger
Introduction:
Hostile merger refers to the acquisition of one small company by another large company without mutual concern.
d)
To discuss: Leveraged recapitalization takeover defence over the hostile merger
Introduction:
Hostile merger refers to the acquisition of one small company by another large company without mutual concern.
e)
To discuss: Golden parachutes takeover defence over the hostile merger
Introduction:
Hostile merger refers to the acquisition of one small company by another large company without mutual concern.
f)
To discuss: Sharp repellents takeover defence over the hostile merger
Introduction:
Hostile merger refers to the acquisition of one small company by another large company without mutual concern.
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Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
- What are the factors that determine whether the company should use cash acquisition or stock acquisition? Discuss five different defensive tactics that the target company can use to thwart this takeover attempt. 3) What are the possible cash flow benefits from this acquisition?arrow_forwardDiscuss five different defensive tactics that the target company can use to thwart this takeover attempt. 2) What are the possible cash flow benefits from this acquisition? 3)Should Genie go ahead with the acquisition using cash or stock acquisition?arrow_forwardDescribe briefly four factors which explain why shareholders of acquiring companies rarely benefit from takeovers?arrow_forward
- In defending against a hostile takeover, the strategy that involves teh target firm creating securities that give their holders certain rights that become effective when a takeover is attempted is called the ______________ strategy. Select one: a. shark repellent b. poison pill c. greenmail d. golden parachutearrow_forwardThe minority stakeholders may exchange their P100 par value shares for P400 cash in case they do not agree with the acquisition what type of anti-hostile takeover strategy ???arrow_forwardLook at a recent example of a merger announcement, and log on to the website of the acquiring company. What reasons does the acquirer give for buying the target? How does it intend to pay for the target—with cash, shares, or a mixture of the two? Can you work out how much the target’s shareholders will gain from the offer? Is it more or less than would be the case for an average merger? Now log on to finance.yahoo.com and find out what happened to the stock price of the acquiring company when the merger was announced. Were shareholders pleased with the announcement?arrow_forward
- In defending against a hostile takeover, the strategy that involves the target firm creating securities that give their holders certain rights that become effective when a takeover is attempted is called the ______________ strategy. Select one: a. shark repellent b. golden parachute c. greenmail d. poison pillarrow_forwardDescribe some of the positives and negatives from the point of view of both the acquirer and the target in a merger. What is the usual impact on the stock prices of each?arrow_forwardWhich of the following is NOT normally regarded as being a barrier to hostile takeovers? a. Abnormally high executive compensation. b. Targeted share repurchases. c. Poison pills. d. Shareholder rights provisions. e. Restricted voting rights.arrow_forward
- Explain the mechanism of using financial leverage as a takeover defense toolarrow_forwardThe following are sensible motives for mergers EXCEPT: a. Economies of scope b. Reducing firm risk through diversification c. Reducing competition d. Eliminating inefficiencies e. All of the abovearrow_forwardWhich one of the following is probably the most effective means of increasing investors' interest in an IPO? Multiple Choice Extending the lockup period Issuing the IPO through a rights offering Underpricing the IPO Eliminating the quiet period Eliminating the Green Shoe optionarrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT