Chapman PLC has recently become subject to a hostile takeover bid from Annan PLC. (a) Managerial motives including empire building was reported to a key reason for Annans bid for Chapman PLC. Outline other potential reasons which could explain Annans hostile takeover bid. (15 marks) (b) Review the regulation of mergers in the UK. (10 marks) (c) Outline what a dawn raid is and discuss the 3%, 30% and 90% rules which companies conducting a hostile takeover bid must observe whilst pursuing a target company. (30 marks) (d) Discuss SIX defence strategies that target companies can employ to help stave off a hostile takeover bid. (30 marks) (e) Annan PLC successfully acquired Chapman PLC but within a few years it was clear that the merger was not proving to be as successful as Annan PLC had envisaged. Evaluate the possible reasons for merger failure. Your answer should include a discussion of the Hubris hypothesis developed by Roll (1986).