Problem 1 (p. 51) :
Problem 1 (p. 51) Target, Bidder closely held companies
Stock-for-stock merger
Target will merge into Bidder
Target shareholders
Receive Bidder shares
After deal, will own 30% of Bidder stock Target Corporation
100,000 shares total
Vote: 40,000-30,000 yes
Problem 1 (p. 51) :
Problem 1 (p. 51) Target, Bidder closely held companies
Stock-for-stock merger
Target will merge into Bidder
Target shareholders
Receive Bidder shares
After deal, will own 30% of Bidder stock
Problem 2 (pp. 51-52) :
Problem 2 (pp. 51-52) Pharmacia merging into Pfizer
Both Del. companies
Both traded on NYSE
Stock-for-stock merger
Pharmacia shareholders
Receive Pfizer stock
After deal, will own 27% of Pfizer’s stock
Problem 3 (p. 52) :
Problem 3 (p. 52) Target, Bidder closely held companies
Stock-for-stock merger
Target will merge into Bidder
Target shareholders
Receive Bidder shares
After deal, will own15% of Bidder stock