Define the tactics of shareholders used after the bid, Financial Management

Assignment Help:

After the bid

Tactics can be undertaken by directors to ensure that their shareholders don't accept the bid, if that is what they desire.

Reject

Shareholders can reject the bid within 14 days of the offer.

Good

forecasts

Forecast better profits to raise share price thus making it more expensive for predator company. Though the forecast has to be achievable or it could have an adverse effect on management. Profit forecasts have to be endorsed by company's financial advisors.

White knight

Another company can be found who can make a bid for target company, which would be more acceptable to the shareholders ("white knight").

Give bad

publicity

Attacking predator company to give it a bad image, such as criticise their management style and products in the papers. However could be faced with liable charges if accusations are unfounded.

Competition

commission

Get government involved and show that takeover wouldn't be in the interests of the public.

Management

buyout

Management of the company can buy out their shareholders.

 


Related Discussions:- Define the tactics of shareholders used after the bid

Portfolio Management, Portfolio Project The purpose of this project is to h...

Portfolio Project The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice. You are gi

What is the expected return of cinderella''s portfolio, Question: Cinde...

Question: Cinderella invests the following sums of money in common stocks having the expected returns as detailed below: (a) What is the expected return of Cinderella's por

The beta of a firm, Suppose the market portfolio is equally likely to incre...

Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%. a.    Calculate the beta of a firm that goes up on average by 43% when the market goes up a

Define insurance company that takes on the greater risks, Which type of ins...

Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected in opposition to

Highest earnings-per-share, McGovern Company is comparing two disimilar cap...

McGovern Company is comparing two disimilar capital structures - an all-equity plan (Plan I) and a levered plan (Plan II).  Under Plan I, the Company would have 700,000 shares of s

Second-round financing, Second-Round Financing This is the introduction...

Second-Round Financing This is the introduction of further funding through original investors or new investors to enable a new organization to deal with finance growth or unexp

Define double-entry bookkeeping, Q. Define Double-Entry Bookkeeping? Do...

Q. Define Double-Entry Bookkeeping? Double-Entry Bookkeeping - Method of recording financial transactions in that every transaction is entered in two or more accounts and inclu

Debt finance, Ask queswtion #Minimum 100 words accepted# what are the chara...

Ask queswtion #Minimum 100 words accepted# what are the characteristics of debt finance? What are the similarities and differences between debt finance and ordinary share capital

How are financing costs capital budgeting analysis process, How are financi...

How are financing costs generally incorporated into the capital budgeting analysis process? Financing costs are typically captured in the discount or hurdle rate when doing IRR

Relationship between bond price and time, Relationship between Bond Price a...

Relationship between Bond Price and Time   (If Interest Rates are Constant) The bond price changes as the bond moves closer to its maturity. If the bond is quoted

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd