Academic Skills

TOPIC: Takeover

PREPARED BY:

NAME: Muhammad Amer

ROLL NO: 38497

SUBMITTED TO:

MR. Robert Murray

Takeover is defined as one company (acquirer) buy the other company( Targtet).like you merge the company without change the name or formation of company(Taarget)

You can see easily that corporate takeover in UK and united kingdom is more common than other country of the world like Germany have no such a ration the reason is Dual board Structure. In Japan Company have interlocking set of ownership and in republic of china most company own by government.

Form of takeover:

Takeover is divided into 2 forms

Friendly takeover:

Consists of a straight buy out of company, and happen all the time. The shareholder receives cash or an agreed –upon number of shares of the acquiring company stocks.

Hostile takeover:

A hostile takeover occurs when a company attempt to buy out another company whether they like or not.

Hostile takeover only occur in public ltd because it need to acquire to bypass board of director and buying the shares from other source like share market, broker. There only difficulty that share are available and easily purchased in the market.

In hostile takeover buying company have two options.

Tender offer:

A tender offer is easy way to buy the share’s or stock of the target company either directly from the company or alternative source.

Proxy fight

A proxy fight only occur when company try to encourage shareholder to use their proxy vote to make a new management that will be open to takeover. This technique avoid the acquiring company paying the payment to target company.

Disney – Marvel:

Disney takeover ownership of 5,000 Marvel characters, such as Spiderman and X-Men, Marvel shareholder will get$30 per share in cash plus 0.745 Disney shares for every Marvel share owned.

Remarks:

Disney is the perfect home for Marvel’s fantastic library of characters given its proven ability to expand content creation and licensing business....