Abstract
There is a variety of strategies for a company wishing to expand its product lines or geographically, or rid itself of the underperforming aspects of its business that may be utilized in a more productive enterprise. One strategy is that of mergers and acquisitions. A second strategy is divestiture and asset sales, which may be necessitated by the need for additional capital and/or to focus on more productive parts of the business. A third strategy may involve entry into a joint venture or other related connections with another company to perform a particular project. A fourth strategy is to go either public or private, e.g., by means of a leveraged buyout.1 We will discuss some of the major strategies in this chapter.2
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Notes
The contents of this chapter rely to a great extent on the following excellent texts that the reader may consult for a much further elaboration on the subject matter: Dale A. Oesterle, Mergers and Acquisitions in a Nutshell, J Thomson/J West, 2d. Ed. (2006) and Jeffrey Haas, Corporate Finance in a Nutshell, 2d Ed., 2010.
See J. Fred Weston, Takeover and Corporate Restructuring: An Overview, 25 Source No. 2 (April, 1990), www.freepatentsonline.com/article/Business-Economics/8884693.html.
Economy Watch, History of Mergers and Acquisitions (July 17, 2010), www.economywatch.com/mergers-acquisitions/history.html.
Paul, Weiss, Rifkind, Wharton & Garrison LLP., M&A at a Glance (May 2012, Issue 2), www.paulweiss.com/files/upload/MA_May.pdf.
Investopedia, The Basics of Mergers and Acquisitions, (2010), www.investopedia.com/university/mergers/.
William F. Griffin Jr. & Avi M. Levy, Tax Aspects of Corporate Mergers and Acquisitions, p. 2 (2007).
Glen A. Kohl, & Lea Anne Storum, M&A Double Take: Why Two Mergers Are Better Than One, 5 The M&A Lawyer, No. 7 (January, 2002).
For an excellent discussion, see Dartmouth Tuck School of Business, Note on Leveraged Buyouts (September 30, 2003), http://mba.tuck.dartmouth.edu/pecenter/research/pdfs/LBO_Note.pdf.
See comments by Tom Hals, UPDATE 2-Judge Upholds Airgas Poison Pill Defense (February 15, 2011) www.reuters.com/article/2011/02/15/airgas-airproducts-idUSN1512841920110215.
For a discussion, see Urs Peyer and Anil Shivdasani, Leverage and Internal Capital Markets: Evidence from Leveraged Recapitalizations, J. Eco. of Fin. (2001), http://faculty.insead.edu/peyer/Research/jfc2001.pdf.
The Free Library, Health Risk Management and Chiplease Sign Standstill Agreement; Share Common Interest in HRM’s Direction, (May 22, 2000), wwwthefreelibrary.com/Health+Risk+Management+Land+Chiplease+Sign+Standstill+Agreement%3B+Share…a062439045. Examples of standstill agreements include the following: Standstill Agreement—H&R Block, Inc. and WorldCom Inc. (September 6, 1997), http://contracts.corporate.findlaw.com/planning/merger/2963.html; and Standstill Agreement Among Dreamworks Animation SKG, Inc., Steven Spielberg, DW LIPS, L.P., M&J K B Limited Partnership, DG-DW, L.P. and DW Investment II, Inc., (October 2004), http://contracts.onecle.com/dreamworks/Spielberg.standstill.2004.10.shtml.
Bruce Wasserstein, A Deal Maker Talks about the M&A Game, Business Law Today (September/October 1999), http://apps.americanbar.org/buslaw/blt/9–1volumes.html.
Ian Huntsley, Corporate Takeover Defense: A Shareholder’s Perspective, (2008), www.investopedia.com/articles/stocks/08/corproate-takeover-defenses.asp.
John Armour, Jack B. Jacobs & Curtis J. Milhaupt, The Evolution of Hostile Takeover Regimes in Developed and Emerging Markets: An Analytical Framework, 52 Harv. Int’l. L. J. 219–285, 221–222 citing Pepper D. Culpepper, Quiet Politics and Business Power: Corporate Control in Europe and Japan, 33, Table 2.3 (2011).
Wall Street Journal, SEC Probes Backdoor Mergers by Chinese Firms, (April 4, 2011), http://online.wsj.com/article/0„SB10001424052748703712504576242973187563498,00.ht…
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© 2013 Roy Girasa
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Girasa, R. (2013). Mergers and Acquisitions. In: Laws and Regulations in Global Financial Markets. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137345462_3
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DOI: https://doi.org/10.1057/9781137345462_3
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