Week 9

Week 1

Chapter 1. Introduction to Business Acquisitions

Part I: Please respond (at least 50 words) to the following scenario by midnight Thursday:

There are two types of acquisitions; hostile takeovers and friendly acquisitions. If you were involved in a hostile takeover, how would you as a leader deal with the employees of the acquired firm?

Part II: Return to the Discuss Board. Review the postings of your classmates and post a meaningful response to at least two postings.

Unit 1 Assignment

In considering the acquisition of the publicly traded company in the first section of the text (i.e., DIRECTV), answer the following questions with respect to this deal.

1. Who is the Target?

Who is the Bidder?

2. Does this deal present any antitrust concerns? Will this deal require any other regulatory approvals?

3. How will investors in Bidder Co. learn of the proposed acquisition of Target Co.? How will investors in Target Co. learn of the proposed sale of their company?

4. What is the nature of management’s concern as to the market’s reaction to the public announcement of this proposed transaction? How will management gauge the market’s reaction? Why is management worried about the market’s reaction to the deal? 

5. What is the acquisition consideration? In other words, what is Bidder offering to pay to acquire Target?

6. Why does Bidder want to buy Target? What business objective is to be served by making this acquisition? Is Bidder a strategic or financial buyer?

7. What is the business incentive for Target to engage in this deal? Why is Target willing to let itself be acquired?

Submission Instructions : Submit your written responses to the assignment by attaching the report file in the Assignment Files of this lesson by midnight Sunday.