CHAPT 1 Flashcards
1
Q
Explain the merger of equals
A
Don’t really exist, usually one end up being the dominant
2
Q
Explain horizontal mergers
A
Merger of competitors, between same business activity, regulation high due to anticompetitive effects
3
Q
Explain vertical mergers
A
Between companies that use to have a buyer-seller relationship between them
4
Q
Explain what’s a tender offer
A
Offer made directly to shareholderst
5
Q
What’s a word cie use when they don’t want to be clear if they want to buy or sell ?
A
Strategic alternative
6
Q
Advantages of holding company
A
No need to buy 51% can be as low as 10% to have power
