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2. Discuss the positions of various stakeholders, including Heinz shareholders, management, employees, and citizens of Pittsburg.3. Discuss the go-shop process, why it may be necessary, and risks associated with this process.4. Why were so many investment bankers involved in this transaction, and what were their respective roles?5. What was the acquisition premium? Was this reasonable?6. Why did this transaction propose zero synergies? Discuss and quantify potential synergies that could be realized, including where they come from, the period of time over which they can be realized, and quantify the impact on enterprise valuation.7. What was the market reaction to the acquisition announcement, including share price and equity analyst commentary?
Kmart, Sears and ESL: How a Hedge Fund Became one of the World’s Largest Retailers1. Describe recent trends in the hedge fund and private equity industry and the growing overlap betweenthe two.2. Analyze different issues surrounding a purchase by a financial or strategic buyer and their respectivestrengths and weaknesses. 3. Provide a brief historical background of the problems facing Kmart and the characteristics of thedistressed debt market, including factors that influence an investment in a distressed company.4. Compare Kmart’s financials before and after bankruptcy (see Case Exhibit 6). 5. Discuss the causal events facilitating the acquisition of Sears. Could Sears have succeeded as astandalone retailer? 6. Evaluate Lampert’s strategy and the benefits for Sears’s shareholders. .