Unit 2b. Mergers & Acquisitions

1. Unit 2b. Mergers & Acquisitions

2. Part I Background informationPart II ReadingPart III Listening

3. Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity.

4. Acquisitions • Also known as takeovers • The buying of one company (the target) by another.

5. Reverse takeover • A smaller firm acquires management control of a larger or longer established company and keep its name for the combined entity.

6. Mergers • A combination of two companies into one larger company. • Beneficial to both parties • Stock swap or cash payment

7. Reverse merger • A deal that enables a private company to get publicly listed in a short time period. • Occurs when a private company, usually one with no business and limited assets.

8. Hostile and Friendly Acquisitions • Friendly acquistition • Companies cooperate in negotiations • DANON VS Wahaha

9. Hostile and Friendly Acquisitions • Hostile acquisition • Target is unwilling to be bought or target’s board has no prior knowledge of the offer • Usually by purchasing the majority of outstanding shares of the target in the open market • Against the will of target’s board • Yahoo VS Microsoft

11. Classifications of mergers • Horizontal mergers (同业合并、横向合并) • Lenovo VS IBM • Vertical mergers (纵向合并) • MGM VS Sony • Congeneric mergers (同源合并) • Computer Monitor VS Projector • Conglomerate mergers (集团合并、混合合并) • Marionnaud VS Watsons

12. Questions: Mergers and acquisitions: what are the differences?

13. Distictions • Acquisitions • one takes over another/established itself as the new owner • Target ceases to exist • Mergers: • Two firms agree to make a single new company • Daimler-Benz VS Chrysler

14. II. Motives behind M&A(1+1 >2) • Read the passage on Page 22. • Find all examples of M&A in this passage. • What are the motives of M&A behind each example?

15. II. Motives behind M&A(1+1 >2) • Exxon & Mobil • Deutsche Bank VS Bankers Trust • Siemens VS Matra

16. II. Motives behind M&A(1+1 >2) • Synergy: • Reduce duplication • Increased revenue/Market Share • Cross selling • Economies of Scale • Taxes • Diversification • Empire building

17. Business file: the magic of the merger • Exxon  埃克森石油公司 • Deutsche Bank  德国德意志银行 • Bankers Trust  美国银行家信托公司（信孚银行） • Siemens  西门子公司（德国电器、电子制造商） • Matra  马特拉（法国高科技企业集团） • Alstom  阿尔斯通公司（法国电力设备商及运输系统公司）

18. Vodafone  沃达公司（英国移动电话运营商） • AirTouch Communications  空中联系通信公司（美国公司，被英国沃达芬公司收购） • VodafoneAirTouch  沃达丰空中联系公司 • AT&T （American Telephone and Telegraph） 美国电话电报公司 • Media One  传媒一号公司（英国互联网和移动电话运营商）

19. BMW  宝马汽车公司 • Rover Group 陆虎集团 • Zeneca  杰尼卡（英国制药公司） • Astra  艾斯特拉制药公司（瑞典） • AstraZeneca  艾斯特拉杰尼卡公司 • Losec  洛塞克, 艾斯特拉制药公司生产的治溃疡

20. Daimler-Chrysler  戴姆勒-克莱斯勒公司（德国汽车制造商） • Mannesmann  曼内斯曼公司（德国电讯运营商,被英国沃达芬公司收购） • Bell Atlantic  贝尔大西洋公司（美国电信业务运营商）

21. Desperately 不顾一切地 • Defence group 军工企业 • Consortium 财团 • Record 空前的，创记录的 • Swap 交换 • Portfolio 组合 • Equity stake 股份 • Destablize 使…不稳定

22. Listening: A Merger of Equals

23. all-share science-based long-term growth worldwide presence 3rd largest innovation-led academic institutions restructuring administration executive team