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4. (1) On April 28, 2008, Mars Inc. announced that it had reached an agreement to merge with Wrigley Corporation for $23 billion in cash.
4. (1) On April 28, 2008, Mars Inc. announced that it had reached an agreement to merge with Wrigley Corporation for $23 billion in cash. While mergers among competitors are not unusual, the deal's highly leveraged financial structure was uncommon in transactions of this type. Almost 90 percent of the purchase price would be financed through borrowed funds. What is the name of the deal structure Mars was using to acquire Wrigley? Briefly discuss two disadvantages of this type of deal structure. (1+ 3 marks)
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