Ever wondered what makes the likes of Mr. Malvinder Singh, the CEO of Indias largest drug manufacturing business Ranbaxy Laboratories, sell his entire 34.8% stake in the company he gave his blood and sweat for years!. Well for mortals like me Malvinder Singh had gone nuts!…untill I digged in a little deeper into the tale and got to know of the science behind M&As; this hold is an attempt to solve the mystery of mergers and acquisitions and the deal structuring process.
Mergers and acquisitions are an inborn vehicle for corporate evolution. The term mergers and acquisitions (M&As) encompasses a widening roam of activities, including joint ventures, licensing, spinoffs, equity carveouts, tracking mental strains, restructuring, alliances, and other corporate interactions such as network relationships. The various issues raised are loose and complex, from tax and securities laws to antitrust and corporate laws.
Lets have a imagine at the whats, whys and hows of M&As.
The `Whats`…
Merger?…Acquisition? errr.. What do I call it?
There are several ways in which a star sign can be acquired by other firm.
In a merger, the boards of directors of two firms allot to combine and sample stockholder approval for the combination.
In most cases, at least 50% of the shareholders of the tar come out and the bidding firm have to agree to the merger. The target firm ceases to exist and becomes part of the acquiring firm; Digital Computers was absorbed by Compaq after it was acquired in 1997.
In a consolidation, a new firm is created after the merger, and both the acquiring firm and target firm stockholders receive stock in this firm; Citigroup, forinstance, was the firm created after the consolidation of Citicorp and Travelers InsuranceGroup.
OAO LUKOIL Holdings AG of Russia agreed to acquire the ISAB Refinery, a Syracuse-based oil and gas exploration and production company, a unit of ERG SpA, for 2.75 bil, in a composition of a joint venture (JV). LU was to...If you want to get a full essay, order it on our website: Orderessay
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