Business Administration 1220E Chapter Notes -Multiple Choice, Corporate Crime, Agency Cost

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Maria Ferraro

Document Summary

Transfer of control from one ownership group to another . The terms mergers, acquisitions, and takeovers, are often used in different ways. One acquiring firm or bidder completely absorbs another target firm. Acquiring firm retains identity, while the acquired firm ceases to exist. Key idea: the disappearance of the purchased firm as all senior management functions reside with the acquirer. Not always obvious: e. g. although it was announced two companies, ati and. Amd, were joining together and that it was a new company, the fact is that. Because ati"s shares were delisted from the tsx and on amd website, ati is listed as the graphics of media processes division of amd. Cash transactions: the shareholders in the target company receive cash for their shares. When one company acquires another: approval of the target company"s shareholders is required, since they have to agree to sell their shares.