Pages 6-8

 Merger: 

The company that will be acquired after approval by the board of directors of the two companies at the general shareholders' meeting will not survive.

  • Absorption-type Merger:
    • A merger in which two or more companies dissolve the remaining merged companies with one company as a subsidiary, and the assets, businesses, and liabilities are comprehensively inherited by the surviving company
  • Consolidation-type Merger:
    • A merger in which two or more companies form a new company by dissolving an existing company, and the newly established company acquires assets, businesses, and liabilities of the dissolved company.


Take-over bid: 

      The act of selecting a company subject to M&A and openly buying the company's stock, and the forces that attempt M&A will buy the stocks traded on the stock market at a higher price than the market price for a certain period.

Greenmail:

    Corporate hunters threaten the management of a target company after purchasing a large amount of shares.

White Knight:

    Friendly forces drawn from outside by companies subject to hostile M&A to defend management rights.



Poison pill: 

    A strategy that deliberately reduces the probability of M&A target companies. A plan that breaks the will to take control of management by informing the other party that it could lose a lot of money if it takes over.

Golden Egg:

    A method of separating the key businesses (golden eggs) targeted by the attacker, defense techniques that discourage M&A motivation, methods commonly used in the United States, and critical assets and technologies that cause M&A.

Pac-man:

    A strategy named after the popular video game, it involves a reverse acquisition re-intention. This tactic aims to confuse the attacker by purchasing the shares of the M&A entity when the M&A entity announces its intention to buy the shares of the M&A entity.



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