Mba Project

ACQUISITION Acquisition is be defined as an act of getting effective control over assets or management of a confederacy by other company without any combine of businesses or companies. A substantial acquisition occurs when an acquiring cockeyed acquires substantial quantity of shares or voting rights of the organise company. nuclear fusion OR AMALGAMATION Merger or amalgamation may take cardinal forms: Absorption is a combine of two or more companies into an existing company. Consolidation is a combination of two or more companies into a new company. In merger, there is complete amalgamation of the assets and liabilities as well as shareholders interests and businesses of the merging companies. There is yet another mode of merger. present one company may purchase another company without giving proportionate ownership to the shareholders of the acquired company or without act the business of the acquired company. TAKEOVER The term takeover is understood to imply hostility. When an acquisition is a forced or unwilling acquisition, it is called a takeover. CLASSIFICATION OF ACQUISITION CLASSIFYING ACQUISITIONS There are several ways in which a degenerate can be acquired by another firm.

In a merger, the boards of directors of two firms agree to combine and seek stockholder plaudit for the combination. In most cases, at least 50% of the shareholders of the target and the bidding firm have to agree to the merger. The target firm ceases to exist and becomes part of the acquiring firm In a consolidation, a new firm is created after the merger and both the acquiring firm and target firm stockholders receive stock in the new firm; Citigroup, for instance, was the firm created after the consolidation of Citicorp and Travelers indemnification Group. In a tender offer, one firm offers to subvert the outstanding stock of the other firm at a specific price and communicates this offer in advertisements and mailings to stockholders. By doing so, it bypasses... If you compulsion to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.