3. Evaluate the P&G offer. Make a list of the positive and negative aspects of receiving shares or cash from both the perspective of P&G and Gillette shareholders.4. Compare the valuation analyses in Case Exhibits 6 and 7 (1stEdition) or Case Figures C4.4 and C4.5 (2ndEdition). Why are they different? Support and defend the validity of using each valuation method.
5. Discuss the conflicts of interest for the investment bank in an M&A transaction where the same firm that writes the fairness opinion in support of the deal stands to be paid a large fee if the transaction is completed.6. Should investment bankers and companies spend their time appeasing politicians worried about theeffects of possible mergers? Are politicians representing the interests of the American public when theyquestion the merits of a deal? Also evaluate the role played by federal and international regulators. Isthere any better solution to the complicated regulatory process?7. Evaluate the role played by Warren Buffett in the merger. Should the support of one investor be adeciding factor in the completion of an M&A transaction?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. .
You've reached the end of your free preview.
Want to read all 5 pages?
- Spring '14
- Corporate Finance, Bear Stearns, investment banking industry