I. Introduction a. Ben & Jerry’s Homemade was on the table for takeover by other firms; specifically four, Dreyer’s, Unilever, Meadowbrook Lane and Chartwell. With the increased competitive market and declining financial performance, takeover bids were coming in. Co-founders Ben Cohen and Jerry Greenfield knew that in order for B&J to maintain its social stature, it would need to remain an independent company; but chief executive Perry Odak felt that the shareholders would be best served by selling the company. II.
Question 1 Why does Dow want to buy Rohm and Haas? Was the 78 USD a share bid reasonable? Part 1: Why does Dow want to buy Rohm and Haas? To discover why Dow wanted to buy Rohm and Haas, we first have to discover the rationale behind the corporate takeover strategy and Dow’s own strategy in general. Andrew Liveris, CEO of Dow, had announced the “Dow of Tomorrow” strategy in 2006, which consisted of two parts.
The disadvantage of this would be the lack of additional input from other shareholders could help in expanding or continuing the business. • Profit Retention- Any earnings made as a sole proprietorship is retained by the owner. The owner can determine how much to retain in the business funds and how much to take as personal use. • Convenience- A sole proprietorship is very simple to start.
A PLC is a large business like Tesco and their shares are on the stock exchange. LTD companies are large businesses like Harrods and they make more profit and have limited liability. In this task I will be describing two different organisations and I will explain the purpose of the two organisations and there ownership. The 2 organisations I will be using are Barclays bank and Shelter UK. Barclays Barclays started in 1690.
However, if everything came together appropriately, Goldstein could forcibly close the discount and earn an exceptional return wen he has free reign over the fund's strategy. Getting into this position is very difficult for an activist investor such as Goldstein because it required pleasing many parties with conflicting interests. Management of the funds would be reluctant to reduce the fund size in any way as it would cut into their annual fees. Shareholders were most interested in an effective return on their investments. And, investors in OP would expect Goldstein to maintain his strategy and direction for the OP fund.
A couple of the advantages to preferred stock are fixed rate of dividends and no voting rights. Fixed rate of dividends means that whatever the stock is issued at percentage of par when the stock is inquired by the investor is what the dividends will remain when paid by the company. Plus, they make the investor feel more secure in their decision to buy into the company with the knowledge that preferred stockholders are paid first, the amount contracted, and even in terms of liquidation. When speaking of voting rights, stockholders do not have a say in anything the company does and does not do. The company retains its ownership with preferred stock.
* When and why do corporations issue common and preferred stock? * For what reasons do corporations acquire treasury stock and how does treasury stock affect stockholders’ equity? Casandra Barrett 3/8/2013 Week 8 Class Discussion There are two types of stocks that corporations commonly issue. The first type is common stock and the second is preferred stock. Common stock allows the stockholders to elect members of a Board of Directors and to vote on corporate policy.
| | Issues: » Study the synergies of the merger between Hindalco and Novelis » Study the rationale behind Hindalco acquiring a loss making aluminum company » Examine the way the acquisition deal was financed » Analyze whether the deal was overvalued or not » Analyze the trends in the global aluminum industry Contents: | Page No. | Introduction | 1 | Background Note | 2 | The Deal | 5 | Rationale for Acquisition | 6 | The Pitfalls | 8 | Exhibits | 10 | Keywords: Hindalco Industries Limited, Novelis Inc., Merger and Acquisition, Deal Valuation, Debt-equity Ratio, EV/EBITDA Ratio, Indian Aluminum Industry, Merger Integration, Consolidation, Downstream Business, Upstream Business "The acquisition will catapult the group into the Fortune 500 league, three years ahead of the target. The combination of Hindalco and Novelis will establish a global integrated aluminium producer. "1 - Kumar Mangalam Birla, Chairman of Hindalco, in February 2007. "The combination of Novelis's world-class rolling assets with Hindalco's growing primary aluminum operations and its downstream fabricating assets in the rapidly growing Asian market is an exciting prospect.
They should not use their power to achieve their personnel targets and objectives. What Allen did is use his authority to recruit his daughter in other company where there is business relation with this company from where many of his firm supplies from this company, and in the same time the president of this company ( Garbo ) is his friend. So what he did is involve in what we can called conflict of interest. Using his power and authority to achieve personnel objectives On the other hand what Garbo did is totally wrong, as to keep the customer which is Allen Firm he hire the vice president daughter. May be he retain the customer to increase the volume of the sale but in the same time he breach the procedures and the policies of his HRM organization, as in every organization there must be procedures and process in recruitment, and some conditions should be available in applicants to be recruited like qualification and experiences, but this was not the case while he recruited Amber, and there will be adverse impact when nepotism used in any organization, as it will destroy the employees morale, and for sure this will be having negative impact on the efficiency and productivity of the others employees as they will feel that KPI will not work honestly as the close relationship with president will be more effective.
According to our book the goal does not imply that the financial manager should undertake any illegal or unethical behavior in the process of trying to meet this goal. In general, I believe, the subjects of customer and employee safety, the environment, and the general good of society should fit into this framework but in truth it probably doesn’t always. I think they may be ignored if it is too costly to fit into maximizing the value of the company’s stock. In a case where a firm finds a problem with a product and knows it will cost more to fix the problem than it would cost in liability claims if it leaves the problem the way it is the general good of society may suffer because the company would lose money trying to fix the