UPDATE Merger potential ahead? Figure 1: Glencore vs XTA 12 month forward P/E 9.0 8.0 7.0 6.0 5.0 4.0 1 a 9-M y 2 a 6-M y 2 n -Ju 9 n -Ju 1 6-Jun 2 3-Jun 3 0-Jun 7 l -Ju 1 4-Jul 2 1-Jul 2 8-Jul 4 ug -A 1 ug 1-A 1 ug 8-A 2 ug 5-A 1 ep -S 8 ep -S 1 ep 5-S 2 ep 2-S 2 ep 9-S GLEN.L XTA.L Source: IBES consensus; prices as of 5 October 2011 ■ Summary: Following the recent underperformance and de-rating of XTA vs. Glencore, we examine the potential for an XTA-Glencore merger in this report
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World War II through provision of alcohol for wartime supplies; rubber and gunpowder production. Throughout the years BFC made several acquisitions which proved to be profitable; Early Times, Jack Daniels and Southern Comfort to name a few. Through successful marketing relationships and investing in international alcohol distributing companies, the timely acquisitions, and BFC’s innovative efforts - developing a new whiskey in 1988 - as well as their ability to diversify via purchasing well-known global
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distributor they have more power with suppliers and pricing bargaining. They are able to keep smaller companies out of their marketing areas as they have a larger economic scale. They build synergies between the companies and are able to pay for acquisitions of new properties or companies with its shares and it has little or no liquidity problems. The threat’s to acquiring another organization in the same industry is there may be duplication of efforts between the management and departments. When
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When exaiming HP’s proxy statement (def 14a) I found the section related to their auditors, E&Y. In the breakdown of how fees were charged, audit-related fees were equal to almost half of the audit fees. Being that HP was engaged in numerous acquisition transactions, it would make sense that these fees were high. In doing my own research, I found that IBM, a competitor of HP, has had substantially high audit-related fees as
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Reset Its Global Acquisition Agenda The China company seems unstoppable in the growth of economy, that perception is understandable, because no other nation come close to matching the China economics since late 1970s. The changes have been so rapidly but the China company sometimes failure in the cross border mergers and acquisitions. In 2000, China government realized local companies would need to be globally competitive to survived and allow local companies to mak acquisition. In 2006 the value
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CASE STUDY: GSK (GlaxoSmithKline) Warm-up: • Do you think that we should prevent pharmaceutical firms applying for patents? • Selling drugs online has become a common practice. Do you believe we should go further in this direction? • Is the wave of M&A beneficial for clients in the pharmaceutical industry? Question 1: Derive three opportunities and three threats for GSK by first making the PESTEL analysis of the macro-environment surrounding the pharmaceutical industry. PESTEL analysis
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It has rightly pointed out the benefits of due diligence and this fact cannot be over emphasized. According to Perry and Herd (2004) ‘Between recognizing the potential value or a merger or acquisition and achieving a new and fully integrated enterprise is a dangerous middle ground where anything can happen” It is because of this dangerous middle ground that many have advocated that due diligence should be given a second look. The issue is not the carrying out of due diligence but the efficiency and
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Tyco. In 1992 he was appointed to CEO. 4. When Dennis was appointed CEO how did he plan to expand the Tyco empire? He was appointed CEO in 1992 and he expanded the Tyco empire through a series of strategic mergers and acquisitions. 5. What was the nickname for Dennis on Wall Street? Deal-a-month Dennis 6. Why did Wall Street like Tyco? Where was Tyco headquarters located? Wall Street liked Tyco's relatively small overhead. Tyco headquarter
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value chain to be a market leader. The aim was not easy but yet achievable through a series of long term strategy plans and a variety of short term tactics. They moved away from dealing in partnerships via equity based deals to fully fledged mergers and acquisitions. Millennium was laser focused on achieving the ultimate goal producing its own products and serving them to the consumer directly, in turn giving more power to the company. At the same time, importance is laid on the cultural
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basic human rights. If Google opts to stay in China, it could face serious fines and other penalties from its own government. And those fines would be in addition to the added regulatory scrutiny the company faces every time it proposes a merger or acquisition, given its dominant place in the search market. (Conclusion) Dealing with foreign governments is no bike-ride at the park; there are laws and rules involved. We really need to be careful in how we deal with foreign
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