Select one of the merger/takeover situations that has been given prominence recently in the media. Analyse your selected case under the following headings (indicative guidelines are provided).

1 Strategy – How does the ‘victim’ appear to fit into the acquiror’s long-term strategy?

2 Valuation and bid tactics – Has the acquirer bid or paid ‘over the odds’? What were the pros and cons of the financing package?

3 Defence tactics – Were the tactics employed sensible ones? Were the managers of the target company genuinely resisting or simply seeking to squeeze out a higher offer?

4 Impact – Will the acquired company be difficult to integrate? Are any sell-offs likely?