4th edition of Mergers and Acquisitions, Cases, Materials and Problems by Terese Maynard.

In considering the acquisition of the publicly traded company in the first section of the text, 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 managements concern as to the markets reaction to the public announcement of this proposed transaction? How will management gauge the markets reaction? Why is management worried about the markets 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?