An individual investor received a circular advice with respects to trade and gathered some other info about the amalgamation. She must determine whether the offer is appealing enough for her to vote her proxy in favour of the trade and tender her shares. The case provides a chance for pupils to assess the acquisition from the unique perspective of an individual investor.
Considerable data is provided on trades and similar firms allowing for ratio-based valuation of the trade. Since all payments to investors were made in form of stocks as well as plain money, accurate valuation could not be made. Advice is also provided that allows for a general discussion of the takeover process in addition to the pros and cons of using a takeover as a means of going public (a reverse takeover).
Publication Date: 08/28/2002
This is just an excerpt. This case is about Finance