Your Questions About Merger And Acquisition Strategies

Richard asks…

Rgd. Merger and acquisitions?

How do you think Bill Gates(as an individual investor in Microsoft) is going to benefit from the acquisition of yahoo, purchasing it for a higher price ( i think Ms is willing to pay some 49$ for a current share price of 21$ something)

admin answers:

Arun
I think no company may become viable without the name
and the gates or ambani are the same dominants
So This is going to help

Donna asks…

how do small companies and shareholders benefit in Mergers and acquisitions?

esp in india

admin answers:

Typically, the smaller company is acquired by the larger business.

When this happens, the owners (shareholders) of the smaller company are compensated with cash, stock in the larger firm, or a combination of cash and stock.

For the small business, it may have never paid a stock dividend, and its shareholders invested with the hope of getting a big payout that would happen upon acquisition. In many cases, the shareholders of the smaller firm had stock that was “restricted,” meaning it could not be sold immediately, so they had no way to get a return on their investment until the sale of their business.

For these shareholders, they now have a tangible payback. And for the founders, their dream has happened, and they often have substantial money — “life changing money” that will allow them to do whatever they wish.

Paul asks…

Can anyone translate this article into Chinese for me?

Under the amended Reit Act, debt financing and bond issues will be allowed up to twice the amount of the net equity of the company.
Right of first refusal to sell shares
In CR-Reits, shareholders who oppose the extension of the holding period under the articles of incorporation are granted the right of first refusal to sell shares. Under the amended Reit Act, that right of first refusal will be granted for all types of Reits, if there is an issuance of new shares following an in-kind contribution, or if the Reit is subject to a merger or acquisition.
Shareholding limits
To give increased flexibility to shareholders, the holding limit of 10% of outstanding shares per person for K-Reits will be increased to 30%. There will be no change for CR-Reits as shareholders in CR-Reits have not been subjected to any restrictions with respect to the number of shares.
Asset portfolio requirements
Under the Reit Act, a Reit has to meet certain requirements regarding asset composition at the close of each quarter: (i) at least 70% of the total assets must be invested in real estate; and (ii) at least 90% of the total assets must consist of real estate, real estate related securities and cash.
Under the amended Reit Act, this will be relaxed so that: (i) at least 70% of the total assets must be invested in real estate; and (ii) at least 80% of the total assets must consist of real estate, real estate related securities and cash. However, for CR-Reits, only the first requirement applies.
Income deduction for dividends
According to the amended CTL, Paper Company Reits will receive the same tax benefits as CR-Reits with respect to the deduction on distributed dividends for corporate income tax purpose, given that they distribute 90% or more of their distributable income.
Registration and acquisition taxes
Before 2003, under the TILL, there was a 100% exemption on registration and acquisition taxes for CR-Reits regarding the real property acquired by CR-Reits, while other types of Reits received only a 50% reduction. However, towards the end of 2003 and in accordance with the amendment to the TILL, the 100% exemption enjoyed by CR-Reits was also reduced to 50%, which is equal to the rate applied to other types of Reits.

admin answers:

Cannot do it myself but many sites on internet will do it for you not all are free but if you keep looking you will find if i have time later i will search for you and give you some links

Linda asks…

Cisco Dell merger? (hypothetical)?

A hypothetical situation I am attempting to create for an Accounting class.
Would Cisco and Dell ever merge?
What would be the benefits to each side? negatives?
Would I use Dell’s market cap as a guide for approx. how much it would cost Cisco to purchase Dell?
Sorry, I am a beginning Accounting student with zero knowledge of the computer networking industry attempting to put together a presentation to “shareholders” as to why we should consider merging with Dell in the 2010 year.
Once I can establish the “price” of Dell then I can examine, through Cisco’s financial statements, the best way for them to come up with the funds to make such an acquisition.
Thanks in advance!
That’s a great answer!! Not what I was hoping for but it made a lot of sense.
Aren’t Cisco and Dell both competitors of HP? Wouldn’t a merger between the two secure their position as a computer networking giant also now able to reach into the personal computing spectrum?

admin answers:

Well, A CISCO/Dell merger makes no sense, Dell is strictly a computer manufacture and CISCO is network support, so there really isn’t anything to merge,

The only real value to CISCO would be the revenue from Dell’s PC sales, I’m sure Del’s shareholders would be happy to get a 30% premium,.

Yes, you’d use Dell’s market cap and expected revenue to figure a purchase price by CISCO,

Other than that, those two do not compete against each other so there would be no cost savings from streamlining manufacturing and resource sharing,

They only way they’d be able to complete the deal would be thru a CISCO share exchange and CISCO throwing in a little cash, something like .8 shares of CISCO for existing share holders and cash to Dell,

Good luck.

Thomas asks…

2010 mergers that I can research on?

Can anyone think of any mergers and acquisitions that happened in 2010 that I can research on for my economics project? I need to do a cost-benefit analysis for it, so I need a lot of information for it.

admin answers:

Have a look at the website of the Institute of Mergers, Acquisitions and Alliances (IMAA). There you will find a collection of the biggest transactions by region and country:

http://www.imaa-institute.org/statistics-mergers-acquisitions.html

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