ADM 3350 Lecture Notes - Lecture 7: Net Present Value, Enbridge

• School: University of Ottawa
• Department: Administration
• Course: ADM 3350
• Professor: Kaouthar Lajili

Document Summary

Lesson 8 chapter 30 : mergers and acquisitions. 30. 6 calculating the value of the firm after an acquisition. 30. 7 a cost to shareholders from reduction in risk. 30. 8 two bad reasons for mergers *not to focus on. Cost: about billion, all stock @ . 33. The basic forms of acquisitions: there are three basic legal procedures that one firm can use to acquire another firm: Acquisition of assets: although these forms are different from a legal standpoint, the financial press frequently does not distinguish between them. In our discussions, we use the term merger regardless of the actual form of the acquisition. Merger or consolidation: a merger refers to the absorption of one firm by another. The acquiring firm retains its name and identity, and acquires all the assets and liabilities of the acquired firm.