The following are details from the fictional acquisition of Namco (a pool, and home pool table, company) by Freds Pools, both fictional public companies. Originally the Freds Pools began negotiations with Namco in good faith, but when talks broke down, Freds Pools approached Namcos shareholder directly with the offer. Namcos management had been upset from the very start as Freds Pool disclosed they had bought 3.5% of Namcos shares before the deal was announced.

Pre-news of the deal, Namcos stock price was $25. Freds first offer was for $32, but finally the deal closed at a price of $35. Namcos management was not happy, but the premium offered was too high to reject they could have argued that the original $32 was not adequate, but $35 was difficult to argue against if offered $35, most shareholders would take this offer.

Fill in the blanks (show workings where necessary) or select the correct choice: This is an example of a (horizontal/vertical/conglomerate) deal. The deal began as (friendly/hostile) but turned (friendly/hostile) before it closed. The 3.5% stake acquired before the deal was announced is known as a ___________ purchase. The premium originally offered over the pre-deal price was __________________. The final premium over the pre-deal price was ___________________. Since the final offer was too good to reject, this was an example of a _________________, one of three hostile tactics commonly used.