The market capitalization and debt of a public firm are $150 million and $350 million respectively. The firm has $5 and $15 million of minority interest and preferred stock respectively. Moreover, it has a cash position of $300 million. 

Explicate how a hedge fund which feels there is value in this company, can orchestrate a takeover, if it estimates it has to pay a 20% premium for the company's stock. 

What will the statement of financial position look like before and after the acquisition?

Answer rating: 100% (QA)

solution Orchestrating a Takeover by a Hedge Fund Heres how a hedge fund could potentially orchestrate a takeover of the public firm with the given information 1 Building a Stake The hedge fund can st... View the full answer