(a) Briefly define and discuss the following theories on the merger and acquisition phenomena: 1 Synergy...

  

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(a) Briefly define and discuss the following theories on the merger and acquisition phenomena: 1 Synergy hypothesis ii. Agency theory (e.g. Hold-up problems) (b) What are the main objectives of horizontal acquisitions, vertical acquisitions and conglomerate acquisitions respectively? (c) The Company Oriental Express is investigating a possible merger with Company Euro Toys. The below is the basic financial information about the two companies: Price per share Number of shares outstanding i. ii. iii. iv. V. Oriental Express $3 50 million Euro Toys $2 27.5 million Both Oriental Express and Euro Toys are mature firms. The market value of the merged firm will be $225 million. Oriental Express plans to pay EuroToys $64 million for the merger. What is the synergy of the merger? Where does the synergy come from? What is the cost to Oriental Express? What are the gain and stock price change of Oriental Express? What are the gain and stock price change of EuroToys? (a) Briefly define and discuss the following theories on the merger and acquisition phenomena: 1 Synergy hypothesis ii. Agency theory (e.g. Hold-up problems) (b) What are the main objectives of horizontal acquisitions, vertical acquisitions and conglomerate acquisitions respectively? (c) The Company Oriental Express is investigating a possible merger with Company Euro Toys. The below is the basic financial information about the two companies: Price per share Number of shares outstanding i. ii. iii. iv. V. Oriental Express $3 50 million Euro Toys $2 27.5 million Both Oriental Express and Euro Toys are mature firms. The market value of the merged firm will be $225 million. Oriental Express plans to pay EuroToys $64 million for the merger. What is the synergy of the merger? Where does the synergy come from? What is the cost to Oriental Express? What are the gain and stock price change of Oriental Express? What are the gain and stock price change of EuroToys?

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a i Synergy Hypothesis In this Hypothesis The total value from the c... View the full answer