AFM 371 Lecture Notes - Astral Media, Viterra, Takeover

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM 371
• Professor: Neil Brisley

Document Summary

Quick wrap expected on viterra auction : www. theglobeandmail. com/globe-investor/quick-wrap-expected-on-viterra- auction/article2372242/ Bell, astral media, . 4b, 75% cash, 25% stock, assumption of debt . Press release: www. theglobeandmail. com/globe-investor/news-sources/?date=20120316&archive=cnw&slug=c4982 www. theglobeandmail. com/globe-investor/investment-ideas/streetwise/astral-had-other-options-chose- bce/article2371439/ board seat, 10x ebitda. Against management wishes, bidding company buys shares straight from shareholders. Poison pills: a financial device designed to make unfriendly takeover attempts unappealing if not impossible. Shareholder rights: a provision that allows shareholders to purchase stock at a certain price when the takeover occurs; purpose is to discourage hostile takeovers. Golden parachutes: benefits given to executives in the event the company is taken over by another firm; main aim to protect execs. What is a white knight": a kind of ally firm that would offer a takeover bid in order to force the hostile bidding company to negotiate with management. Firm b and firm x are both all equity, no debt, and both have a cost of capital of 12%p. a. (wacc)