Management and Organizational Studies 1023A/B Lecture Notes - Lecture 3: Contingent Liability, Multinational Corporation, Insider Trading

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: ALL

Document Summary

Takeover the transfer of control from one ownership group to another. Acquisition when one firm (the acquiring firm or the bidder) completely absorbs another firm (the target firm). Acquiring firm retains its identity, while the acquired firm ceases to exist. A merger is usually the combination of two firms into a new legal entity. If share capital is limited and wants to offer in excess of this limit approval is needed. Friendly takeovers: friendly acquisition - the acquisition of a target company that is willing to be taken over. In contrast, the target may be able to shield any potential tax payments with other losses. Future payments are usually based on divisional sales or other reasonably objective data that both parties agree on. Hostile takeovers: hostile takeovers a takeover in which the target has no desire to be acquired, actively rebuffs the acquirer, and refuses to provide any confidential information.