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Question
Why did AlliedSignal, after announcing it had purchased 20 million AMP shares at $44.50, indicate that it would reduce the price paid in any further offers it might make?
Answer
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Related questions
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An excessively long list of screening criteria used to develop a list of potential acquisition targets can severely limit the number of potential candidates. True or False
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Acquiring companies often find themselves with certain assets and operations of the acquired company that do not fit their primary strategy. Such assets may be divested to fund future investments. True of False
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Management may sell assets to fund diversification opportunities? True or False
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Both a divestiture and a spin-off generally generate a cash infusion for the parent. True or False
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In deciding to sell a business, a parent firm should compare the business after-tax value in sale with its pre-tax value to the parent as part of the parent.
True or False
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A joint venture is rarely an independent legal entity such as a corporation or partnership.
True or False
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Give examples of how the partners objectives differ.
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What factors may have contributed to the decision to discontinue efforts to implement the joint venture? Consider control, scope, financial, and resource contribution issues.
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Why was Mattel interested in diversification?
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Which of the following is true about integration planning? Without integration planning, integration is not likely to
a. Provide anticipated synergies
b. Proceed without significant disruption to the target business operations
c. Proceed without significant disruption to the acquirers operations
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e. All of the above
Q:
Which of the following is not typically true of post-closing evaluation of an acquisition?
a. It is important not to change the performance benchmarks against which the acquisition is measured
b. It is critical to ask the tough questions
c. It is an opportunity to learn from mistakes
d. It is commonly done
e. It is frequently avoided by acquiring firms because of the potential for embarrassment.