...be able to realize the benefits of such a deal they would need to increase the efficiency of the business through refining their product offering through cutting certain product lines and reducing employees who’s tasks have become redundant due to the merger as well as combining the two companies’ distribution networks. This will likely result in the retention of the Nicholson family’s shares since Cooper will probably not allow complete management independence. To take control of Nicholson, Cooper needs to obtain 265,000 more shares but if the Nicholson management does not accept Cooper’s terms then the 247,000 shares that are held by speculators and uncommitted shareholders will not be sufficient. This leaves them with the option of striking an agreement with H.K. Porter. Since Porter now has 177,000 shares that will be converted to VLN preferred shares if Nicholson accepts their offer, it would be beneficial for them to come to an agreement with Cooper since their preferred shares are a more attractive option. Porter’s position may leave room for negotiation, Cooper may be able to bring down their asking price of a tax free $50 per share. Besides the current issue of Cooper being able to acquire Nicholson, they may have to consider some other problems they may encounter post merger. Assuming the Cooper manages to acquire a controlling share of Nicholson, they still need to refine Nicholson’s operations to reach their projected cash flows and return on equity that were the...
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...F u r t h e r Praise for Globalization and Its Discontents " Development and economics are not about statistics. Rather, they a re about lives and jobs. Stiglitz never forgets that there are people at t he end of these policies, and that the success of a policy should be d efined not by h o w fast international banks are repaid, but by h o w m u c h people have to eat, and by h o w much better it makes their lives." — Christian Science Monitor " [An] urgently important new book." — Boston Globe " Whatever your opinions, you will be engaged by Stiglitz's sharp i nsights for a provocative reform agenda to reshape globalization. A m ust read for those concerned about the future, w h o believe that a w orld of decent work is possible and want to avert a collision course b etween the haves and the have nots." —Juan Somavia, d irector-general of the International Labour Organization " [Stiglitz s] rare mix of academic achievement and policy experience m akes Globalization and Its Discontents w orth r e a d i n g . . . . His passion a nd directness are a breath of fresh air given the usual circumlocutions of economists." — BusinessWeek " T h i s smart, provocative study contributes significantly to the o n g o i n g globalization debate and provides a m o d e l of analytical r igor c o n c e r n i n g the process of assisting countries facing the challenges of e c o n o m i c development and transformation. . . . Impassioned, balanced and i n f...
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