A Report on the Proposed Project to Takeover

A REPORT ON

THE PROPOSED PROJECT TO TAKEOVER

A RIVAL COMPANY COMPETING WITH

JEBB PLC.

SUBMITTED BY: AGBO UZOMA C.K

DATE: 30TH MARCH, 2010.

Section 1: Introduction

The fundamental of every economic activity relies heavily on the growth of investments which is facilitated by the growth achieved by business organization in every company. The aspect of finance is very crucial so as to Paste Paper and Bibliography:

encourage increased productivity and growth. However, one of the vital goals of most firms or companies is to ensure increase in the wealth of the shareholders, although this can be achieved in different approaches.

As the financial manager of Jebb Plc, I consider our company as one of the largest listed company in the Capital Market, thereby making sure that we maintain a consistent increase in shareholder’s wealth. However, the fact still remains that the growth and success has to be preserved. It is certain that the company have access to raise fund from the Stock Market because investors have increased confidence in the company’s operations. Our major objective of ensuring increase in the shareholder’s wealth is in order to sustain their confidence demands that we diversify by embarking on some projects. Considering our intention, alongside with the take over project of a rival company that competes with Jebb Plc for market share in our core business, our reserve indicates that we do not have enough finance within the company. Hence, the company has to incur debts in order to undertake any of the proposed projects.

The takeover plan or project of the rival company needs to be carefully analysed and also indicates a clear distribution between mergers and takeovers.

The Board of Directors of the company should not misconceive the takeover project as a merger because one of the undermining principles of a merger is a complete control over the acquired company. Hence, it is a form of acquisition

Section 2

Mergers & Takeover mergers...