PARTA Frito Misto Pty Ltd operates ten trawlers off the West Coast, Salvatore Pescatore started operations in the 1960's with a single boat and continued in this manner for many years, eaming the Pescatore family an adequate living. During the 1990's, Salvatore's own son, Alfio, was awarded the MBA degree and his daughter Santuzza, qualified as a chartered accountant. Both joined their father in his business. Through their efforts they showed how the business could grow by borrowing funds to finance further trawlers. Salvatore would not hear of borrowing money from a bank, but he was persuaded at least to borrow the money from the family. Loans were raised from cousins Francesco and Leonardo who had made a lot of money in the security business, and even Salvatore's sister Zla Pina and his mother Nonna Gerba were able to provide substantial loans from monies they received from Sicily. A company was formed and one million shares were issued: 55% went to Salvatore, and 20% went to each of the children. Mama Lucia, Salvatore's wife, received 5%. Since the formation of the company and the introduction of the financial and general managerial skills of Alfro and Santuzza the company has prospered and profits have now reached R4m per annum before tax. A ship has become available at a cost of R10m and the children feel that it should be acquired. However, the company, the shareholders, and the family will be able to supply only R5m. Despite the fact that Salvatore has mellowed as he has aged and is not as locked into the manners of his heritage as he used to be, he still holds the view that to borrow from a banker is dishonourable. A number of gentlemen, always dressed in dark pin-striped suits, have been seen asking questions around the boats and talking to the staff. They are representatives of another family who operate a financing business known as the Banco di Castellamare del Golfo in Cape Town It is rumoured that they are prepared to acquire a substantial stake in the business at a premium (shares in Frito Misto are worth approximately R5 each). It is further believed that while the fishing operation will continue, the Banco is particularly keen to have its own ships for diversifying into the import/export business for specialised products. Required: Identify all the courses of action open to the Pescatore family. Explain why you believe each may or may not be a good idea and whether it is likely to succeed. (10 Marks)