Greenmailing is the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the target firm to buy those shares back at a premium in order to suspend the takeover. We can suppose that Pickens attempted to greenmail Koito as it is mentioned in the case “The high price Mr. Pickens allegedly paid for his stock […] added to the suspicion that he intended to greenmail Koito”. Moreover, Pickens was known as “an aggressive, tenacious, and generally hostile bidder for corporations”. Pickens was the largest shareholder of Koito. According to the US corporate governance custom and convention, Mr. Pickens was entitled to representation on the board.
Something else to be considered is that when a company uses money for share repurchases when it could be paying a higher dividend instead, the company’s management is limiting your control and increasing theirs. As a shareholder in a company that makes uses of share repurchases, you have to rely on management’s ability to judge whether it’s an appropriate time to repurchase shares, whereas with your dividend, you have complete control over that choice. The flexibility of dividends for shareholders is great, because if allows you to direct your flow of income to where you think the best investment opportunities are at any given time. Share repurchases lack that
First, manage rather than own hotel assets. Second, invest in projects that increase shareholder value. Third, optimize the use of debt in the capital structure. Fourth, repurchase undervalued shares. The company regularly calculated “warranted equity value” for its common shares and repurchased its stock whenever the market price fell substantially below that value.
Mr. Clarkson is willing to increase the amount by a new agreement with Northrup Bank. The cash flow crisis and repayments of short-term debts are the root causes of Mr. Clarkson’s need for additional financing. This report includes financial analysis and recommendation upon the request of Northrup Bank Credit Department. Analysis Using the ratio analysis, basic insights can be gathered about the financial performance of the company. For this analysis, we don’t have the ratios for the industry; thus, we will examine the trends for the years including 1993-1995.
Service providers, when classified as agents, are able to report trading and brokerage fees as revenue, although not for the full value of the transaction. Although trading firms such as Goldman Sachs and Merrill Lynch used the conventional "agent model" for reporting revenue (where only the trading or brokerage fee would be reported as revenue), Enron instead elected to report the entire value of each of its trades as revenue. This "merchant model" approach was considered much more aggressive in the accounting interpretation than the agent model. Enron's method of reporting inflated trading revenue was later adopted by other companies in the energy trading industry in an attempt to stay competitive with the company's large increase in revenue. Between year 1996 to 2000, Enron's revenues increased by more than 750%, rising from $13.3 billion in 1996 to $100.8 billion in 2000.
2010) is provided below. 1167872 4 Despite the leading position and the good business results, SWOT shows several sources of potential risks for UST. The company is losing market share against new price-value competitors because of slow innovation and late product introduction and extensions. Historically, UST relied on his leading market position boosting earnings with annual prices increases. But in the meanwhile smaller competitors started to quickly erode market share with prices cut.
Their business included some long term investment and no short term returns to the company. Enron’s auditor was also accused of conducting business in an unethical manner in his attempt to retain the loyalty of Enron executives. At that time laws and SEC regulations allowed firms like Arthur Andersen to provide consulting services to a company and then turn around and provide the audited report about the financial results of these consulting activities, therefore making an “independent audit” by Arthur Andersen independent in name only. The Accounting Scandal It was revealed that it’s reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud, known as the "Enron scandal". The accounting techniques used to influence Enron’s financial statements were a combination of many different complex tactics.
Such as tax consideration, diversification, control, purchase of assets below replacement cost and synergy and so on. Base on the situation described upon, CompuTech needs to merger a company which can enrich their production line, which is the financial software, and CompuTech also needs that company have enough market following in the financial software market. So the merger decision is made based on the consideration of many reasons. The CompuTech want to Growth, want to expend more market, more users. The Synergy would be reasons why CompuTech want to merger CCI, because CompuTech have no experience about develop financial software, but after merger CCI.
Porsche made a huge financial profit from the increase in the stock price when short sellers had to buy back shares to cover their position. Also, Porsche was able to control 71.4% of the Volkswagen shares. 3. Who are the losers? The losers of this whole operation are the short sellers who had to fight over the remaining shares to cover their position pushing the stock prices high and incurring losses on their positions. 4.
This downturn is also reflected in stock market valuations of hotel groups. And one trend of note sees an increase in the number and quality of spa facilities. With increasing supply of new spa hotels and the credit crunch, how can Solberri maintain this turnaround and increase profitability? Key issues There are a number of issues facing Solberri, some of them are key issues as they are either in need of an urgent response or with a significant impact on the company. We list them on the priority we think should be consider: 1.