CH12.1 - Chapter Twelve Changes in the Corporate S tructure...

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Chapter Twelve Changes in the Corporate Structure and Corporate Combinations
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Corporate Combinations Merger Merger : : combination of two of more corporations into one corporate entity Consolidations Consolidations : : combination of two or more corporations into one new entity
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Staggered Boards . It might take an aggressor several years to obtain control of a board of directors that is staggered (meaning one whose directors stand for election at different times). Golden Parachutes . The corporation may grant senior managers golden parachutes requiring that these individuals, if ousted, be compensated in some extraordinary amount. The golden parachutes may make a takeover prohibitively expensive for an aggressor. Poison Pills . A poison pill (or shareholder rights plan) is triggered by a tender offer. Once the tender offer is announced, shareholders are automatically given certain rights, such as increased voting rights or rights to acquire additional shares of the target at bargain prices. These rights make acquisition of control by a bidder far more difficult and may be extremely costly. Slide 1 of 2
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This note was uploaded on 01/06/2012 for the course PARA 092 taught by Professor Stephanieferill during the Fall '11 term at DeAnza College.

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CH12.1 - Chapter Twelve Changes in the Corporate S tructure...

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