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Unformatted text preview: What Effects a Company’s Communications: 1. PR/IR Agency 2. Media 3. Regulators 4. Arbitrage * Hostile takeover: How to Buy Companies: 1. Use stock to buy company a. Advantage: allows you to do deals you wouldn’t normally be able to do since you don’t have cash b. Most risky 2. Cash deal a. Most ideal 3. Combination a. Most common Proxy Solicitation-Press release is issued-Then a proxy statement, saying why you should vote for the transaction Brand Penalties break-up fee-A way to insure you don’t get into a PR war Board of Directors Integration-Cost of combining companies-How many employees will lose their jobs-How long does it take How are you getting cash * Synergies: when combining companies, the process of creating value and combining efficiently by firing employees to eliminate doubled positions...
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- Fall '08