23. Mergers and acquisitions

23. Mergers and acquisitions

1.        Anderson Accounting has been taken over / taken up by Berlin Brothers.

2.        Collins Corporation has made a bid /play for Dacher Deutsche.

3.        The Board of Dacher Deutsche rejected/ denied Collins Corporation’ offer.

4.        Eastern Electricity has joined/ merged with Grampian Gas.

5.        Inter-tek has been sold by its father/parent company, Harrison Holdings.

6.        Inter-tek has been acquired / got by Johnson Johnson.

7.        Harrison Holdings is expected to sell more of its subsidiaries /children in the future.

 

Takeover bid

    In a takeover bid, another person or business makes an offer to the shareholders to buy their shares at a fixed price. The aim of this is to take control of the target company.

    If it is a welcome takeover bid, the directors of the company advise the shareholders to accept the offer. If the shareholders accept the offer, the result is usually called a merger.

    If the bid is unwelcome, the directors advise the shareholders against accepting it. The bidders may then write to the shareholders explaining the advantage of the takeover, and perhaps improving the offer for the shares. This is known as a hostile takeover.

    To avoid an unwelcome takeover bid, the directors may devise a poison pill – a tactic that will mean the company is worth less if the takeover bid is successful. Alternatively, then may look for a white knight – an alternative bidder for the company whose takeover would be more welcome.

    In an unconditional bid, the bidder offers a price for each share regardless of how many shares it can buy. In a conditional bid, the offer price depends on the bidder being able to buy enough shares to gain a control interest in the target company.

 

1.      Berlin Brothers bought a _______ shareholding in Anderson Accounting.

a. more-than-half          b. biggest                  c. majority

2.      In the UK, mergers and acquisitions are not by the government.

a. controlled               b. checked                 c. regulated

3.      However, they are subject to a voluntary_______.

a. code of conduct           b. code of practice          c. way of doing things

4.      Buying a company for less than the value of its assets, then selling those assets to make a profit is called

a. asset stripping           b. profiteering              c. exploitation

5.      Sometimes a controlling interest in a company is bought by its mangers. This is called a management.

a. buy-out                  b. buy-up                   c. buy-in

6.      In the past, a lot of small banks were by larger ones.

a. bought up                b. eaten up                  c. chewed up

7.      In other words, there was in the banking industry.

a. amalgamation            b. combing                   c. consolidation

8.      A takeover of a foreign company is known as a deal.

a. cross-boundary            b. cross-border               c. cross-state

 

1.      make/ reject / accept/ improve / retract

a. an offer/ a bid

2.      buy up some

h. shares/ smaller companies

3.      subscribe to / follow / ignore

a. a code of practice

4.      an unregulated

d. activity / industry

5.      do/ close

c. a deal

6.      gain

a controlling interest

7.      consolidation

g. our position in the market

8.      sell off an

e. unwanted subsidiary

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