Management and Organizational Studies 1023A/B Chapter Notes - Chapter 8: Fairness Opinion, Multinational Corporation, Cash Flow

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

Document Summary

Takeovers refer to the transfer of control from one ownership group to another. Acquisition occurs when one firm (the acquiring firm or bidder) completely absorbs another firm (the target firm: under this arrangement, the acquiring firm retains its identity, while the acquired firm ceases to exist. Merger usually the combination of two firms into a new legal entity: some mergers run into issues over the intent to merge equals. Buying another company is regarded as similar to buying a new piece of equipment or any other purchase. The alternative to a cash transaction is a share transaction, where the acquiring company offers shares, or some combination of cash and shares to. Going private transaction or issuer bid a special form of acquisition where the purchaser already owns a majority stake in the target company. Authorities can reject takeovers fir a variety of reasons including: concerns related to national security.